Oil jumps on easing Brexit fears, weaker dollar

20th June 2016, Comments 0 comments

Oil prices jumped further on Monday in volatile markets thanks to a weaker US dollar and easing expectations that Britain would vote to exit the European Union, dealers said.

At about 1100 GMT, world benchmark contract Brent North Sea crude for delivery in August was up 84 cents to $50.01 a barrel.

US benchmark West Texas Intermediate for July delivery won 75 cents to $48.73 a barrel compared with Friday's close.

Oil prices had already begun rebounding on Friday after heavy falls last week -- and rose further Monday in line with surging equity markets.

"The recovery is attributable primarily to the general market environment," said Commerzbank analyst Carsten Fritsch.

"However, even if risk appetite has increased again sentiment remains tense. Only a UK vote to remain in the EU could quickly bring calm to the markets," he added ahead of Thursday's referendum vote.

Oil was helped also by a generally weaker US currency, making dollar-priced oil cheaper for buyers of most rival units.

"Judging by the (recent) market reaction... more volatility is likely this week," CMC Markets analyst Margaret Yang wrote in a note to clients.

© 2016 AFP

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