Thursday, oil prices dropped once again with a sell-off continuing the day after inventory report showed a surprise upwelling in the United States oil inventories. Brent crude futures LCOc1 fell 20 cents to settle at $47.87 a barrel, while the United States crude futures CLc1 settled down 8 cents to $45.64 a barrel. In fact, the overall result was that Oil prices have dropped below $50 a barrel despite a pledge by the world’s largest exporters, led by the OPEC, to extend a cut in output of 1.8 million barrels per day, into 2018.
Lipow Oil Associate’s president,Andrew Lipow, claimed that the market was struggling after the inventory report. He also added that the market continued to be impatient with the OPEC and the non-OPEC cuts, and was searching for more data globally.
With the currently ongoing British election, pound sterling met its biggest daily fall since the start of 2017 before recovering some ground on Friday after an exit poll unexpectedly showed the British Prime Minister,Theresa May, was surprisingly falling short of an overall parliamentary majority in Britain’s election.
Despite of the recent polls that shows May’s Conservative party has a chance in winning the parliamentary majority, the current poll, shows a projection that raised questions about how Britain will advance with its plan to leave the European Union, and whether any party could form a stable government.
Thus, this unstable political situation had negative effect on the pound. It went lower by 1.3 closing at $1.2780, after having fallen as low as $1.2705 GBP=, and 87.59 per euro, by 2307 GMT.