Investing.com - Oil prices added to overnight losses in European trade on Thursday, sliding to a four-week low as global concerns over a potential Brexit weighed on appetite for riskier assets.
Crude oil for July delivery on the New York Mercantile Exchange fell to a session low of $47.22 a barrel, a level not seen since May 19. It last traded at $47.38 by 07:57GMT, or 3:57AM ET, down 63 cents, or 1.31%.
A day earlier, New York-traded oil prices dropped 48 cents, or 0.99%, after data showed that oil supplies in the U.S. fell much less than expected last week.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 933,000 barrels last week to 531.5 million. Market analysts' expected a crude-stock decline of 2.3 million barrels.
U.S. crude futures are down almost 8% since hitting a 2016 high close to $52 a barrel on June 9 amid indications of a renewed gain in U.S. drilling activity.
According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. increased by three last week to 328, the second straight weekly rise, fueling speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
Despite recent losses, Nymex oil prices are still up nearly 80% since falling to 13-year lows at $26.05 in early February. However, with prices now at levels that make drilling economical for some firms, the rig count might start rising soon and the decline in U.S. production may slow.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery declined 69 cents, or 1.41%, to trade at $48.28 a barrel after falling to an intraday low of $48.14, the weakest level since May 24.
On Wednesday, London-traded Brent slumped 86 cents, or 1.73%, as global concerns over a Brexit weighed on appetite for riskier assets.
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.
Brent futures prices are nearly 8% below last week’s 2016 high of $52.86 amid easing concerns over global supply disruptions.
Meanwhile, Brent's premium to the WTI crude contract stood at 90 cents a barrel, compared to a gap of 96 cents by close of trade on Wednesday.