After the murder of Mr. Joe Cox, a member of British of Parliament on Thursday, who was a strong supporter of the UK membership in the European Union, there were a lot of articles in mass media indicating that the murder may affect the people’s attitude making them top vote in favor of the UK’s membership in the EU. The price of the Pound, and the Euro went up. On Monday the rise continued. Oil prices also went up.
On Sunday the results of a new poll were published. According to which, the number of supporters of the UK’s membership the EU has increased, exceeding the number of supporters of the exit.
At the beginning of today’s Asian session, the price of oil rose. At the beginning of the session of ICE Futures in London, August futures for crude oil Brent rose by 0.42 USD, up to 49.59 USD per barrel and spot- price has exceeded $50.00. However, during the European session, the price dropped to the level of 49.50.
Oil markets are strongly affected by possibility of the exit of the EK from the EU.
Meanwhile, oil market was impacted by some other negative factors. As it became known oil production in Canada has been resumed and the number of drilling rigs in the USA has increased. According to the information released by Baker Hughes last Friday, the number of operating drilling rigs in the USA increased from 328 tо 337.
Nevertheless, oil prices continue to grow after sharp decline last week. Oil market is supported by the positive expectations of the outcome of the referendum in the UK and doubts of the US Fed's leaders about the plans of further monetary tightening in the United States, which cause weakening of the USD in the currency market.
However, until the turbulence caused by the referendum in the UK calms down, and until the results of the referendum becomes known, volatility in the oil market is expected to be high.
On Tuesday, at 22:30 (GMT+2) American Petroleum Institute (API) will publish report on changes in the US oil reserves for the last week. On Wednesday, at 16:30 US Department of Energy will publish weekly report on oil reserves in the US warehouses. Previous report showed the reduction in oil reserves by 933. 000 barrels.