Crude Oil Prices Rally Post-Brexit

Driven by varied factors, crude oil futures gained sharply on Wednesday. NYMEX WTI oil futures closed at $49.88 rising 4.22% on the day, while Brent futures rose 4.18% on the day to close at $50.61 a barrel. In the US, the weekly oil inventory report showed a sixth consecutive week of decreasing stockpiles. For the week ending June 24th, EIA inventories fell 4.1 million barrels, more than the forecasted figure of 2.4 million barrels.

Oil prices resumed the bullish trend and extended their gains for the second day in a row, with the outlook staying positive despite Britain's vote to leave the European Union. Supply disruptions continue to plague the oil markets, another bullish indication. The latest addition to the list is Norway - where oil and gas workers are threatening to go on strike starting this Saturday if their demands for wage hikes go unmet. Other outages currently include Canada, Nigeria and Venezuela, which has put a dent in the market’s supply.