Investing.com - Oil prices extended hefty overnight gains in North American trade on Tuesday, rising for the first three in time sessions as investors scooped up beaten down assets after Britain's vote to exit the European Union stunned financial markets.
The British pound, global stocks and most commodities were all higher as investor sentiment began to improve in wake of last week’s shock vote by the U.K. to leave the European Union.
Oil prices lost more than 7% over the past two sessions, while global equities suffered the largest two-day rout ever, as a wave of selling wiped around $3 trillion from markets.
On the ICE Futures Exchange in London, Brent oil for September delivery climbed $1.28, or 2.68%, to trade at $49.05 a barrel by 13:40GMT, or 9:40AM ET.
Oil got a further boost amid concerns over supply disruption in Norway, where about 7,500 workers on seven oil and gas fields could go on strike from Saturday if a new wage deal is not agreed before a Friday deadline.
The affected fields account for nearly 18% of Norway's oil output, hitting production from the North Sea's top producer.
A day earlier, London-traded Brent futures sank to a seven-week low of $47.30 as investors dumped assets perceived as risky in the wake of the U.K.’s vote last week to leave the European Union.
The news sparked concerns that Europe will fall back into recession, putting more pressure on the global economy and undermining future oil demand prospects.
Elsewhere, crude oil for July delivery on the New York Mercantile Exchange advanced $1.36, or 2.94%, to trade at $47.69 a barrel. On Monday, New York-traded oil prices tumbled to $45.83, a level not seen since May 13.
Market players now looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.4 million barrels in the week ended June 24.