Oil Prices Tumble with British Pound Facing a Fresh Fall

Oil Prices Tumble with British Pound Facing a Fresh Fall

After the results of 'Brexit' vote surfaced the crude oil prices tumble almost 6.8 percent on June 24 but according to some of the analysts, the supply and demand equation is continuing to favor the price increases.

Britain exiting the European Union means there will be a period of indecision related to Europe's future which is shrouding the market.

Francisco Blanch, head of commodities research at Bank of America Merrill Lynch in New York said, "A vote for Brexit is a vote against globalization, against the free mobility of people and goods. Any reversal in the growth of trade and mobility is bad for the commodities, except gold."

After Britain's decision to exit EU, global equities dropped giving a push only to dollar and gold, considered safe haven assets. On Friday, the global financial markets plunged when Britain decided to leave the bloc it joined a little more than forty years ago.

On Sunday, London Brent crude for August delivery was 24 cents down at $48.17 per barrel after settling on Friday $2.50 down or by 4.9 percent at $48.41.

Oil prices came under pressure with a fresh fall of the British pound during the early Asian trading on Monday. The investors are still not clear about what's next.