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UK uncertainty remains (Brent: $48.7)

Brent oil price fell to around $47.5 lows last night, but is up above $48.7 this morning in volatile trading.

Global financial uncertainty (due to UK exiting EU) weighs on prices as oil demand fears spread. The USD gained further strength against the GBP and Euro - making oil more expensive for traders using other currencies than USD (often affecting demand and weighing on oil prices). Investors continue to flee into safe-haven assets like gold, USD, government bonds.

Difficult times in the UK and the global financial markets. Exiting the EU followed by Moody's and S&P downgrades as the financial markets continue to rattle over the economic and political uncertainty of one of the largest countries in Europe.

Tonight, the weekly oil stocks report from the American Petroleum Institute will be published - last week showed a whopping 5.2 mio. barrel-build, which was, however, not confirmed by the official EIA report on Wednesday (reporting approx. 900,000 barrel-draw). Consensus for EIA report tomorrow is a 2.3 mio. barrel-draw - expect volatility around both publishing (late tonight and 16.30 CET tomorrow).

Turning to economic data front, today sees U.S. GDP (14.30 CET), Consumer Confidence (16.00 CET). There will likely be some focus on comments and statements from the EU ministers' two-day summit in Brussels.