Oil drops on prospects of slowdown in demand growth

Oil prices at both the sides of the Atlantic dropped in early trading as economic concerns post Brexit are seen capping oil demand growth.

At the time of writing, Brent was down 25 cents or 0.50% at $49.80/barrel. WTI was down 53 cents or 1% at $48.50/barrel. Major investment banks like Barclays and JP Morgan believe macroeconomic risks are likely weigh over prices.

Prices had rallied in choppy trading yesterday after Saudi Arabia’s energy minister said the global oil market is heading toward balance. Prices were also lifted by militant attacks on Nigerian oil-pumping facilities over the weekend.