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.
In the policy meeting in May 6th, 2016, the US Federal Reserve System (Fed) announced all decisions of raising interest rates of US dollar will be delayed until Fed gauges the consequences of leaving European Union (EU) of England. It is the content of the minutes of the Fed's most recent meeting was posted on Wednesday, Reuters quoted.
Specifically, according to the minutes of the Fed meeting results on 14th and 15th of June (before Brexit), Fed officials expressed very worrying psychology about the consequences of Brexit.
"The members of Fed agreed that before thinking of the dollar interest rate adjustments or change of oriented monetary policy, we need more data on the impact of Bexit on economy", Fed officials stressed.
From time of the meeting took place, fears of Fed officials grow over time. On Wednesday, a senior Fed official, Daniel Tarullo, confirmed just not thinking of raising interest rates until inflation in the US reaches a target.
Brexit has made the global financial markets "stunned", in just 1 day after the historic vote in the UK, global stock markets lost $2 trillion.
Until now, the post-Brexit worries are continuing due to that investors expected it takes many years for Britain and EU to be able to reach a consensus on the regulation of the financial sector, trade and immigration.
On Wednesday, government bond yields fell to US record low, many investors believe that at least until 2017, the Fed could raise the base rate of dollar.
"We will take several consecutive months to have positive signs of US economy when it is possible to adjusting new base rate of dollar", chief investment officer at Wells Fargo Funds Fund Management, said Brian Jacobsen, said.
Since Brexit, US dollar has constantly increased, by reaching more than 2% increase compared to the other currencies in basket of major currencies of the world. Dollar rose, this adversely affects US export. After the minutes of the May meeting of the Federal Reserve was published in June 2016, US dollar fell slightly.
Before Brexit, Fed said possibility ofraising interest rates two times in 2016 to prevent US economy from overheating. Since Brexit, many Fed officials repeatedly have warned extreme caution with this decision and it is too early to assess the full impact of Brexit.
Although the US non-manufacturing sector signaled positive but business investment and recruitment activities of the business do not grow respectively.
After Brexit, British pound has depreciated 13% against USD, particularly on Wednesday, the British pound fell by 1%.
Many Britons are seeking to hold citizenship of the European Union (EU), by pouring to the Irish Embassy in London and the post office in Northern Ireland to ask for passport information and sampling declaration application.
Reuters led a diplomatic source said the post office in Northern Ireland were gone declaration form to apply for a passport, while the Irish Embassy in London received more than 4,000 visits per day to inquire about passport, compared with only 200 times in normal days.
As a rule, anyone born in the Republic of Ireland or Northern Ireland, or whose parents or grandparents are Irish may be granted Irish passport. In the UK today there are about 6 million such people. Citizens of Northern Ireland can bring both passports Ireland and British passports.
"After the referendum of England, the number of people interested in Irish passport from Northern Ireland, Great Britain and elsewhere surges" the head of the foreign affairs agencies of the Northern Ireland - Charlie Flanagan said. "Concerns increase clearly, this reflects the worries of some British passport holders of the rights that they have been in his capacity as EU citizens coming to an abrupt end."
Irish Embassy in Paris also received information of a record polling of passport - according Iain McKenney, a native of England who lived in France for 8 years.
"The best news that I have been this morning when they told me, 'Welcome to Ireland'. I will apply immediately, "McKenney, 41 year olds, said. McKenney has British and Canadian passports, but want to keep the status of EU nationals.
In France, there are about 400,000 Britons meet the conditions to become a French citizen. This condition is that they have lived in France for 5 years or more, or a husband or wife is French.
Anne Wilding, a British retirement age of 63, have lived in the village of La Petite France in western Breille 15 years. She said she was British and wanted to keep his citizenship, but likely to apply for a French passport if UK does not achieve a good deal of work out of EU.
Many Britons have lived many years in Belgium and Belgium are applying for passports. The British have spouses who are nationals of other countries in the EU also want to have a passport of these nations.
Many regional authorities in Belgium told Le Soir newspaper that since Friday last week, the staff of the town hall had been "overwhelmed" by a large number of British people to ask for information to apply for a passport.
In London, the city of 8.6 million people is seen as one of the global cities in the world, young people with a majority vote in the EU chose to stay in the UK are considering their options.
"I'm not happy with the outcome of the vote", Miriam Sottile, a 25-year-old teacher whose father is Italian, said. Sottile is planning to apply for a Italian passport. "I think we are Europeans and want to stay in the EU ... I want to get the opportunity as before," Sottile said.