Oil extends decline as Brexit concerns linger

TOKYO, June 27 (Reuters) - Oil prices dropped around half a
percent on Monday, extending sharp declines after Britain's vote
to leave the European Union sparked a sharp selloff in global
markets on Friday amid concerns over risk aversion.
Global financial markets plunged on Friday as results from a
referendum defied bookmakers' odds to show a 52-48 percent
victory for the campaign to leave a bloc Britain joined more
than 40 years ago.
London Brent crude for August delivery LCOc1 was down 24
cents at $48.17 a barrel by 2250 GMT on Sunday, after settling
down $2.50, or 4.9 percent, at $48.41 on Friday.
NYMEX crude for August delivery CLc1 was down 26 cents at
$47.38 a barrel, after closing down $2.47, or 4.9 percent, on
Friday.
Oil prices were also under pressure as the British pound
fell anew in early Asian trading on Monday, with investors still
at a loss as to what happens next now that the country has voted
to leave the European Union.
Panama opened the long-delayed $5.4 billion expansion of its
shipping canal amid cheering crowds on Sunday, despite looming
economic uncertainty in the shipping industry and a heated
battle over billions in cost overruns.
Hedge funds betting on summer gasoline demand raised their
bullish bets on U.S. crude futures last week, just before the
market's crash on Friday on Britain's shock decision to leave
the European Union, trade data showed.
Russia and China sealed a raft of energy deals during
President Vladimir Putin's visit to Beijing on Saturday,
strengthening economic ties while pledging to preserve the
strategic balance of power among nations.
Algeria's oil output will reach 69 million tonnes of oil
equivalent in 2016, against 67 million tonnes last year, helped
in part by increased production at existing fields, state energy
company Sonatrach said on Sunday.