Investing.com - Oil prices rose sharply in European trade on Monday, with Brent futures climbing back above the $50-level as worries eased about the upcoming referendum in the U.K. on European Union membership.
On the ICE Futures Exchange in London, Brent oil for August delivery jumped to a daily high of $50.12 a barrel, the most since June 13. It last stood at $49.99 by 07:57GMT, or 3:57AM ET, up 82 cents, or 1.66%.
Concerns over a possible Brexit subsided after a series of weekend polls showed the campaign to keep Britain in the EU had regained momentum ahead of Thursday's highly-anticipated referendum.
Last week, momentum appeared to be building for the campaign to leave the bloc, sending risk-sensitive assets sharply lower.
A vote by Britain to leave the European Union may tip Europe back into recession, putting more pressure on the global economy and undermining future oil demand prospects.
A broadly weaker U.S. dollar lent further support to the commodity, as dollar-priced oil futures become cheaper to investors holding other currencies when the greenback declines.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.6% at 93.73, the lowest level since June 9.
Elsewhere, crude oil for August delivery on the New York Mercantile Exchange tacked on 71 cents, or 1.46%, to trade at $49.27 a barrel after hitting an intraday peak of $49.44, a level not seen since June 10.
Gains were limited on signs of a potential recovery in domestic drilling activity. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. increased by nine last week to 337, the third straight weekly rise.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
Meanwhile, Brent's premium to the WTI crude contract stood at 72 cents a barrel, compared to a gap of 61 cents by close of trade on Friday.