Investing.com -- Crude rose sharply on Monday, amid easing concerns of a potential U.K. departure from the European Union, as brent futures closed above $50 a barrel for the first time in five sessions.
On the New York Mercantile Exchange, WTI crude for August delivery traded between $48.78 and $49.99 a barrel before closing at $49.91, up 1.35 or 2.78% on the session. On the Intercontinental Exchange (ICE), brent crude for August delivery wavered between $49.37 and $50.67 a barrel, before settling at $50.60, up 1.43 or 2.91% on the day. Crude futures closed near session-highs following a late rally.
At Monday's close, the spread between the international and U.S. benchmarks of crude stood at 0.69. The front month contract for U.S. crude rolled over to August on Sunday.
In Monday's session, crude prices and global equities soared as the "Remain" campaign in the U.K. continued to gain momentum ahead of this week's controversial Brexit referendum. It came after officials suspended campaigning for two straight days last week following the tragic murder of Labour Party parliament member Jo Cox. Based on live odds, there is a 76% chance the Remain campaign will prevail, according to British sportsbook Ladbrokes (LON:LAD) at odds of 1-4. Alternatively, Ladbrokes said there is a 24% chance voters will choose Leave at odds of 3-1.
A host of major global oil companies have issued ominous warnings of the consequences that could ensue from a U.K. departure from the EU. A "Leave" vote could result in the potential loss of free travel arrangements by UK workers employed by euro area oil companies, while leading to heightened trade barriers between the UK and major nations in the EU. Consequently, scores of UK oil workers could require non-EU citizenship to work abroad, a development that could increase operating costs for top energy companies. Among others, Shell (LON:LON:RDSa) CEO Ben Van Bearden has expressed widespread concerns that a departure from the EU could severely restrain company revenues.
Elsewhere, Platt's Oil reported that numerous countries in the Persian Gulf continue to issue debt at unprecedented levels in an effort to ramp up investment projects worldwide. Before the end of the year, Saudi Arabia could issue as much as $15 billion in bonds on international markets, according to Platt's. Over the last two months, Saudi Deputy Crown Prince Mohammed bin Salman has also reportedly offered a 5% stake in state-run oil company Aramco, which could raise an additional $100 billion in equity.
In Nigeria, the Naira plummeted more than 30% on Monday after the government removed its currency peg against the dollar in a long-term plan to jumpstart the nation's dormant economy. Last month, Nigerian oil production fell by more than 150,000 barrels per day amid a series of attacks on oil facilities in the Southern Delta region by rogue militant groups.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell more than 0.65% to an intraday low of 93.55, its lowest level in a week. The index is down by more than 5% since early-December. Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.
Despite a recent rally over the last five months, crude prices are still down more than 50% from their peak of $115 a barrel two years ago.