Brexit: fear and volatility

The UK will probably vote to stay – but until that’s clear, markets will gyrate

OIL markets have been volatile ahead of the UK's 23 June vote on whether to leave the EU, buffeted by the vagaries of a campaign that has seen both sides claim and surrender the popular advantage repeatedly. A week before the vote, Brent dropped to as low as $47 a barrel, shedding the gains that had taken it to seven-month highs above $50 in late May. Brexit seemed to be on the cards, and the market was worried by the macro-economic implications. But then the polls shifted. On the eve of the vote, with the remain camp perceived to be back in charge, Brent was up again, ticking above $51/b. Why does the Brexit vote matter to oil markets? Think macro. Janet Yellen, chair of the US Federal Re