Investing.com - Oil prices pushed higher on Monday as markets continued to absorb the impact of Friday’s shock vote by the U.K. to exit the European Union, which triggered a broad based selloff in global markets.
Global benchmark Brent was trading at $49.41 a barrel by 0757 GMT on Monday, up 37 cents from its last settlement.
U.S. crude for delivery in August was up 23 cents at $47.88 a barrel.
Both contracts posted their largest one-day percentage decline since February on Friday, falling around 5%, as global markets plunged after the shock decision by the U.K. with investors and traders around the world expecting the opposite result.
But prices stabilized on Monday as analysts said Brexit would have little impact on supply and demand in the global oil market.
The U.K. accounts for less than 2% of the world’s oil demand.
Also Friday, Baker Hughes said that the number of rigs drilling for oil in the U.S. fell last week for the first time in four weeks.
The rising rig count in recent weeks had fueled concerns that price of around $50 a barrel could encourage U.S. producers to increase output and flood the still-oversupplied oil market.
Oil prices have rebounded more than 80% after dropping to 13-year lows in the first quarter of 2016 on the view that the global supply glut is shrinking.
But some analysts have cautioned that the market is still oversupplied and prices could fall in the coming months.