For two days in a row, oil market was under pressure and oil prices fell after the UK referendum.
Since Tuesday morning, the black gold has traded at the price of $47.55 per barrel. However, oil prices are still not in the upward trend. Oil demand in Europe may decline in anticipation of a sharp decrease of industrial activity of the countries of Europe and also due to the exit of the UK from the EU.
Oil prices are under pressure from many other factors, including the increase in the number of drilling rigs operated in the United States, possible resumption of production of the shale oil in the U and continuing oversupply of oil in the world.
However, oil prices have a positive impact from the opinion of market participants that the US Fed will refrain from raising US interest rates this year. So, the futures markets have already incorporated 17% of the possible decline in interest rates in the US at the Fed meeting in November.
Today at 22:30 (GMT+2) American Petroleum Institute (API) will publish report on changes in the US oil reserves for the past week, tomorrow at 16:30 US Department of Energy will issue a weekly report on oil and oil products stocks in the US warehouses. Reduction in oil inventories will support oil prices and Vice versa.