Oil futures sank nearly 5% on Friday in response to the United Kingdom’s referendum vote to leave the European Union, according to Bloomberg MarketWatch.
“The unknowns surrounding the Brexit and chances that other countries may follow suit will be seen as a substantial headwind for risk assets, including oil in the near term, while demand for safe-haven assets such as gold remain elevated,” said Tyler Richey, co-editor of The 7:00’s Report.
On the New York Mercantile Exchange, August West Texas Intermediate crude plunged $2.47, or 4.9%, to end trading at $47.64 a barrel, marking their largest loss since early February.
On London’s ICE Futures Exchange, August Brent crude fell $2.50, or 4.9%, to settle at $48.41 a barrel, marking their greatest drop since early May.
On the New York Mercantile Exchange, July natural gas lost 3.6 cents, or 1.3%, to settle at $2.662 per million British thermal units, about 1.5% higher for the week.