The UK's decision to leave the European Union will make "little difference" to the crude oil markets, according to a brief research note from FirstEnergy.
The UK’s decision to leave the European Union will make “little difference” to the crude oil markets, according to a brief research note from FirstEnergy.
“Brexit may slow an oil price rise, but will not prevent it,” said the oil and gas advisory firm in a brief research note sent to Rigzone.
Turning its attention away from the UK, FirstEnergy revealed that U.S crude oil inventories are having a much bigger impact on the market currently.
“U.S crude oil inventories remain stubbornly high and the oilsands related shutdowns have barely made a ripple to those high inventories, and remain unlikely to do so,” said FirstEnergy in a company statement.
“We expect U.S. crude oil inventories to inch lower over the summer…Global rebalancing remains primarily as supply driven event, led by falling U.S. crude oil supply,” FirstEnergy added.
The UK voted to leave the EU in a June 23 referendum, which saw 52 percent voters call for a Brexit. Following the decision to leave, oil and gas companies and organizations revealed that the move is unlikely to have an adverse impact on the sector.
Royal Dutch Shell said it would work with the British government and European institutions on any implications for its business from a Brexit. The company was in favour of Britain remaining in the EU and said that its priority was to continue supplying energy to customers in Europe and the UK.
Engie CEO Isabelle Kocher echoed Shell’s sentiment and said the company remained committed to investing in the UK, but said that she regretted the British people's decision to leave the European Union. Kocher said the vote does not affect the firm’s view of Britain, where it currently employs around 17,000 people. BP also announced that its headquarters would remain in the United Kingdom, despite Britain voting to leave the EU.
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