Oil prices rise with recovering global markets

TIL Desk/Business/Singapore-Oil prices extended gains in Asia today, tracking a recovery in equity markets as leaders look to temper fears over the effects of Britain’s shock EU exit, while traders bet on measures to negate any turmoil. Asian stocks and currencies have recovered this week after Friday’s global sell-off, as speculation swirls that authorities will inject fresh stimulus into financial markets.

Seoul yesterday unveiled a USD 17 billion plan to support South Korea’s already fragile economy, while news emerged Wednesday that Japan’s leaders were holding talks on how to contain any tailwind from the Brexit crisis. Also yesterday European Central Bank boss Mario Draghi said central banks should aim to align monetary policies to mitigate “destabilising spillovers”.

European leaders who gathered in Brussels for a two-day meeting urged Britain to act quickly to resolve the political and economic mayhem unleashed by the vote. At about 0630 GMT, US benchmark West Texas Intermediate rose 37 cents, or 0.77 per cent, to USD 48.22 and Brent added 32 cents, or 0.66 per cent, to USD 48.90. “The primary driver of the oil market is probably Brexit-related volatility at the moment,” Ric Spooner, chief analyst at CMC Markets in Sydney, told.