Crude oil futures changed course and rebounded on Tuesday, posting gains as markets continued to weigh the outcome of the Brexit vote, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, August West Texas Intermediate crude gained $1.52, or 3.3%, to settle at $47.85 a barrel.
On the London ICE Futures Exchange, August Brent crude, the global benchmark, jumped $1.42, or 3%, to settle at $48.58 a barrel.
Crude oil and the financial markets were stunned following the recent Brexit referendum vote to leave the European Union.
“These markets had been severely oversold, so a bounce was overdue anyway, while hopes have also risen about the prospects of a more coordinated central bank response to support the financial markets,” said Fawad Razaqzada, technical analyst at Forex.com.
The American Petroleum Institute will release weekly data on American crude oil supplies late Tuesday, while the U.S. Energy Information Administration will release its weekly report early Wednesday, according to the Bloomberg report. Analysts expect a decline of 2.4 million barrels in crude oil inventories.
Meanwhile, the July contract for natural gas futures rose 20.1 cents, or 7.4%, to settle at $2.917 per million British thermal units on the New York Mercantile Exchange making it the highest settlement since August 2015. The new August front month contract for natural gas added 14.9 cents, or 5.4%, to reach $2.89 per million British thermal units.
Natural gas futures continued to surge as a result of stronger demand due to weather as well as Monday night’s natural gas processing plant explosion near Pascagoula, Mississippi.