Recently, the price of oil is very dependent on the results the British polls about the exit of the country from the EU, which will be held on 23 June. After the news that according to the latest poll majority of British population is going to vote for continuing membership in the EU, oil prices started to grow again.
Due to uncertainty about the referendum outcome in the UK and oversupply of oil in the market, yesterday, oil prices continued to decline, going down to 50.00 USD per barrel of crude oil Brent.
The price of futures of Brent at ICE Futures fell by 1.1%, amounting to 50.11 USD per barrel.
Last night American Petroleum Institute (API) reported that oil reserves in the USA fell by 5.224 million barrels, after which oil prices went up. The price of crude oil Brent rose to 51.00. Today, at the opening session, Brent is traded in the range of 50.70 - 51.00.
Yesterday’s speech by the head of the US Fed, Mrs. Janet Yellen was restrained. According to Mrs. Yellen, although the US Fed is planning to raise interest rates, some uncertainty about the economic prospects remains.
Cautious comments by Janet Yellen about future rise in the interest rate in the USA also provided support to oil prices.
Nevertheless, investors’ attention is focused on the forthcoming referendum in the UK. If the country stays in the EU, the Pound will grow significantly, while the USD may fall in the short-term and oil prices will grow.
Results of the referendum will be announced on Friday at 04:00 (GMT 2).
Today’s news will include a speech by Mrs. Janet Yellen at 16:00 (GMT 2), although it is not expected that she will add anything new to her yesterday’s speech.
At 16:30, US Department of Energy will issue the data on oil reserves for the last week. It is expected that oil reserves will decrease by 1.9 million barrels. If this forecast prove to be correct, oil prices will go up.