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Oil at One-Month Low as Investors Afraid of Brexit

June 17, 2016 at 0:14 by Vladimir Vyun

Crude oil prices slid almost 4% on Thursday and remained at the lowest level in a month. The reason for the drop was the cautious market sentiment ahead of the Brexit vote. Investors fear the possibility of Britain’s exit from the European Union, therefore they prefer to avoid unnecessary risk associated with buying commodities.

Federal Reserve’s decision to refrain from hiking interest rates and signs that it is not going to raise rates in the near future looked positive Spongebob Bounce House for raw materials at the first glance. Yet economists speculate that Fed’s passiveness indicates worries about global growth. Such speculations are actually detrimental to commodity markets.

July contract for delivery of WTI crude oil dropped 3.71% to $46.19 per barrel as of 23:59 GMT on NYMEX today. August Brent crude dropped as much as 3.63% to $47.19 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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