Market volatility will increase on EU uncertainty
The UK’s referendum on exiting the EU has turned the markets volatile.
The majority vote to leave the EU in last week’s UK referendum has led to volatile changes in the foreign exchange, equity, bond and commodity markets. This volatility is likely to continue as decisions about the extent and speed of the ‘Brexit’ may not be known for several months.
There are at least three risks relevant to gas traders in this volatility: the impact of Brexit on the oil price; the effect of currency volatility on UK-Continental gas spreads; and, biggest of all but perhaps most difficult to quantify, the overall macroeconomic risk.