In Wednesday's trading session, oil prices rose along with stock market, many commodities and other currencies, according to the Wall Street Journal.
On New York market, light sweet crude WTI futures in August, 2016 rose 83 cents or 1.8% to $47.43/barrel. On London market in the same period Brent prices rose 84 cents or 1.8% to $48.80/barrel.
According to WSJ's analysis, since British vote for leaving the European Union (EU), the oil price usually fell amid investors sold strongly stocks and commodities to buy these assets considered as safe such as gold, US dollar.
However, when this trend has changed, oil prices rose along with the stock market and other commodity prices, this happened during Wednesday session.
The stock market rose because new signs showed that the US economy is growing well. Institute for Supply Management (ISM) announced index of non-manufacturing sector in June, 2016 increased to the highest level since November, 2015. S&P 500 rallied immediately after that news.
During yesterday's session, dollar and gold rose, but gains has slowed as trading time gradually ended. Chairman of Excel Futures fund, Mark Waggoner said in Wednesday he did not receive more orders to buy gold but they get a lot of orders to buy other goods, which suggests that investors' demand for gold temporarily cooled.
"According to my forecast, the impact of Brexit coming to an end, the market will pay more attention to other factors in near future," said Mark Waggoner.
Market sentiment is also more stable, British pound after falling to 31 year low has increased slightly, US dollar depreciated. USD index fell 0.2% on Wednesday.
Bank of England (BoA) announced officially to decrease the compulsory reserve rate to encourage banks to extend credit for UK businesses.
Experts forecast US crude stocks fell 2.3 million barrels last week, though still down but this rate is lower than the decline of 3.4 million barrels in the same period last year.
According to the US Energy Information Administration (EIA), compared with the same period, average of oil production in the US fell from April until now. The average reduction is 800 thousand barrels/day. This is considered as a possible factor supporting oil prices.
According to Mr. Fadel Gheit, senior analyst at Oppenheimer & Co funds, one other supporting factor is that level of 40-50 USD/barrel is not enough to encourage energy companies to boost production again, this possibility can only occur when oil prices stabilized above $50/barrel. Therefore, oil prices would have to rise above $ 50/barrel, then could decline as companies take advantage of expanding production.