Oil futures jumped on Monday with the news that the United Kingdom would likely remain a member of the European Union, according to Bloomberg MarketWatch.
July West Texas Intermediate climbed $1.39, or 2.9%, on the New York Mercantile Exchange to end trading at $49.37 a barrel. The July contract expires on Tuesday while as August becomes the front month for WTI.
August Brent crude, the global benchmark, added $1.48, or 3%, on London’s ICE Futures Exchange to settle at $50.65 a barrel.
The U.K. referendum, also known as the Brexit vote that will decide whether the nation leaves the EU, represents “a big threat for [the] global economy,” said Naeem Aslam, chief market analyst at ThinkForex. “All bets will be off if Brexit becomes reality and we could be craving for [energy] demand.”
Meanwhile, July natural gas settled at $2.747 per million British thermal units on the New York Mercantile Exchange, up 12.4 cents, or 4.7%. Natural gas futures rose to their highest level since September as warmer weather forecasts point to a higher demand.
