Oil jumps on easing Brexit fears, weaker dollar

Oil prices continue to trade below $50 a barrel “on fears over the Brexit vote, although it seems like the chances of Britain staying in the European Union are much greater than in previous weeks”.

Futures slid as much as 0.6 per cent in NY, after gaining 6.8 per cent the previous two days. The U.S. government will issue official inventory data on Wednesday. Oil prices closed at a one-month low on Thursday as speculation the United Kingdom would leave the European Union intensified and central banks signaled their worries about global growth. “A vote to leave will have serious economic repercussions”, Amrita Sen, chief oil economist for Energy Aspects in London, said by telephone.

Zangeneh on Saturday stressed Iran’s resolve to regain its OPEC market share of pre-sanctions levels in 2011, noting that “some are unhappy about Iran’s production increase and cite that as the reason for price reduction”.

Traders are also waiting for the weekly United States crude inventories report due tomorrow to gauge demand in the world’s top oil consuming nation, as well as a testimony by Federal Reserve chair Janet Yellen for clues on the timing of a USA interest rate increase. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the USA increased by nine last week to 337, the third straight weekly rise.

USA crude futures’ expiring July front-month contract was down $1.10, or 2.2 percent, at $48.27 a barrel. Total volume traded was about 17 percent below the 100-day average.

Brent crude futures’ front-month, August, settled down 3 cents at $50.62 a barrel, after falling more than $1 to a session low of $49.46. The price for Brent crude oil was down 1.9 percent to $49.70 per barrel. Drilling activity rose for a third week through Friday, with companies adding nine rigs to boost the total to 337, according to data from Baker Hughes Inc.

Caution ahead of weekly USA supply-demand statistics for oil also weighed on crude futures, traders said.

The dollar fell for the fourth day in a row on Monday, trading lower against most major currencies, making dollar-priced oil cheaper for those using other currencies.

In refined product markets, gasoline futures ended at 5.1% higher at $1.5827 a gallon, and diesel futures rose 3.1% to $1.5274 a gallon.