Oil extends drop on risk-off

Global flight from risky assets to safety assets continues in Asia, with oil benchmarks trading moderately lower.

At the time of writing, WTI oil was down 24 cents or 0.50% at $47.40/barrel. Brent oil was down 14 cents or 0.29% at $48.90/barrel. Prices suffered sharp losses on Friday after Brexit sent shockwaves across the globe.

Over the weekend, political uncertainty rose to another level after Scotts expressed desire to stay part of the EU, thus triggering a possibility of another Scottish referendum.

British Pound thus declined in Asia, dragging other risk assets lower along with it. Consequently, oil benchmarks dropped as well, while safe haven assets like treasuries and gold strengthened.