Oil losses mount as world markets hit by Brexit woes

Oil prices fell further in Asian trade on Wednesday, tracking losses across equities and currency markets as fresh fears about the impact of Britain’s exit from the European Union sent investors fleeing high-risk assets.

 A warning from the Bank of England that there was evidence risks from the June 23 Brexit vote “have begun to crystallise” sent shudders through world markets, with the pound diving to levels not seen since mid-1985 and stock markets diving. 

The uncertainty unleashed by Europe’s second biggest economy leaving the European Union battered the oil market this week, with Brent diving 4.3 per cent and West Texas Intermediate shedding 4.9 per cent on Tuesday. The contracts on Wednesday extended the losses.

 At 0330 GMT Brent was down 30 cents, or 0.63 per cent, at USD 47.66, while WTI eased 33 cents, or 0.71 per cent, to USD 46.27. The two are well down from the levels above USD 52 touched at the start of last month.