Oil extends rebound in Asia as Brexit fears recede

Oil benchmarks on both sides of Atlantic extends its rebound from multi-week troughs into a second day today, in wake of a weaker greenback and easing fears over a looming Brexit vote.

Oil awaits weekly supply reports, Brexit vote

Currently, both crude benchmarks are trading over 1%, with Brent at 49.70, while WTI trades just ahead of 49 barrier. Oil prices stalled its run of losses last Friday and continue to move higher as sentiment remains underpinned amid easing Brexit fears after the latest polls show the votes for Remain campaign regained the lead.

Moreover, the greenback prolongs its dovish Fed statement-backed weakness against its major competitors, which supports further recovery in the dollar priced-in black gold. Meanwhile, the USD index dives -0.65% to 93.70, moving-off fresh weekly lows struck at 93.55 earlier on the day.

Further, markets ignored an increase in the US rigs count as all eyes now remain on the UK’s vote on the EU’s membership scheduled later this week, while weekly US crude supply reports will also garnet a lot of attention.

Analysts at ANZ noted, "Investors shrugged off another rise in the US rig count, instead buoyed by continued signs that current prices are still unlikely to incentivise US producers to increase production."