Crude Oil Prices Dive over 4% Post Brexit Decision

Britain has voted to leave the European Union, prompting the resignation of Prime Minister David Cameron and dealing the biggest blow to the European project of greater unity since World War II.

Global financial markets plunged as results from Thursday's referendum showed a near 52-48 percent split for leaving.

The pound fell more than 10 percent against the dollar to levels last seen in 1985, its biggest one-day fall in history, amid fears the decision could hit investment in the world's fifth-largest economy, threaten London's role as a global financial capital and usher in months of political uncertainty.

See: Brexit Occurs, Britain Leaves the European Union; Cameron Will Resign in October

Brent crude was down $2.21, or 4.41 percent, at $47.90 a barrel. While U.S. crude was down $2.33, or 4.88 percent, at $48.58 a barrel.

Earlier in the day, both contracts were down by more than $3, or over 6 percent, the biggest intra-day declines for both since April 18, when a meeting of top global oil producers failed to agree on an output freeze.

Sterling sank 10 percent in value to its weakest since the mid-1980s. The FTSE 100 fell more than 8 percent at the open, with banks among the hardest hit.

Oil major BP said on Friday its headquarters would remain in the United Kingdom, despite the vote for Brexit.

Analysts at Vibiz Research Center estimate crude oil prices have the potential to plunge with the potential strengthening of the U.S. dollar after the Brexit vote. Prices will break through the Support range $47.40- $46.90, and if prices increase, they will break through the Resistance range $48.40 – $48.90.