“The oil fundamentals for the moment will be put to one side as markets try to figure out exactly how this will all work,” he added. “While the oil market fundamentals will ensure no major drop in the price of crude... the oil markets are likely to remain under pressure until the volatility in the financial markets comes down,” said EY Services oil and gas analyst Sanjeev Gupta. Adding to the downward pressure on crude was the strengthening of the dollar, with traders fleeing to the currency’s relative safety. A stronger dollar makes dollar-priced commodities like oil more expensive for those using other currencies. Global markets took a beating on Friday, with some $2.1 trillion wiped off valuations and the British pound plunging to 31-year lows against the dollar, while oil prices slumped more than 5%.

Source: Mint June 27, 2016 08:03 UTC