BREXIT impact on crude oil prices

The Brent crude oil prices are trading at 47.97 with a reduction of about 5 per cent on June 24. The UK has about just 1.6 per cent of world oil demand, so crude should not be too affected by a BREXIT. The crude oil prices may move according to currency fluctuations in global markets. The US dollar may move upwards in short term period. Meanwhile, many research houses are predicting crude oil prices may move more than USD 65.

British Prime Minister David Cameroon, who campaigned to remain in the EU, said he would stand down by October.

Meanwhile, crude oil is not directly affected by BREXIT. The short term scenario is created in global markets such as surge in dollar against British Pound, steep fall in global equity markets, increasing oil inventory in US.

Indian crude oil extraction companies will have positive momentum if crude oil prices gain on short term scenario. From business point of view, majority of companies have exposure in European countries and UK.

The stocks such as Oil and Natural Gas, Cairn India, Oil India and Aban Offshore will be watched out in upcoming days as crude oil movement may impact stock prices on bourses. On Friday, share prices of these companies declined by 3.79 per cent, 3.69 per cent, 2.15 per cent, 5.16 per cent respectively on bourses. Meanwhile, the oil & extraction sector has suffered due to downward trend of oil prices.