The immediate impact of the UK’s referendum outcome (“Brexit”) was a decrease in the value of the pound (£) to a 30 yr low of US$1.34, significant falls in global stock exchanges and the price of Brent falling 5% to US$48/bbl.
Douglas-Westwood argues that the greatest risk to the energy industry is a global economic slowdown, which would suppress oil prices for longer. In the short-term, however, UK-listed oil companies such as Shell, BP and Tullow have fared (comparatively) well since the decision was announced. The end-user at the pump in the UK will, of course, see the opposite effect.
The negotiations on the exit are yet to happen and the timetable and extent of the UK withdrawal are yet to be seen.
Edited from press release by Angharad Lock
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27062016/dw-on-brexit-2661/