After the Brexit bash, global markets are trying to steady themselves as the historic shockwaves of the Brexit vote will continue to cause unease in global markets. The fact that Brexit will actually happen anytime soon is allowing the markets to try to act more normal even as everything in the world has changed.
Crude oil prices bounce around as the trade looks to a Brexit poll that suggests the “stay" campaign may be gaining momentum. It is becoming clear that if the UK votes to stay, then oil prices should move much higher.
The Federal Reserve failed to inspire confidence that they have a handle on what is happening in the global economy. Fed Chair Janet Yellen, in a press conference, seemed to be more defensive about misleading the market explaining why she and other officials said this meeting was a live meeting and then doubled down by saying a July interest rate increase is not “impossible.”
Crude oil prices are moving lower for the second day in a row after a string of weekly increases during the last two months. More market participants are currently pricing in a non-eventful OPEC meeting with more of the same as OPEC is most likely to maintain their market share strategy and let the market price of oil eventually move global oil supply and demand back into balance.
It seems that crude oil is busting out of its bust cycle as the crash in oil prices has put a market that was seriously oversupplied back into a semblance of balance. The reason that we are seeing such a quick turnaround is an old story about how low prices cure low prices.