Investing.com - Oil prices rallied in European trade on Tuesday, climbing for the first three in time sessions as market sentiment began to improve in wake of last week’s shock vote by the U.K. to leave the European Union.
The pound, European stocks and most commodities were all higher as investors scooped up beaten down assets after Britain's vote to exit the European Union stunned financial markets.
On the ICE Futures Exchange in London, Brent oil for September delivery tacked on 90 cents, or 1.88%, to trade at $48.67 a barrel by 07:58GMT, or 3:58AM ET.
A day earlier, London-traded Brent futures declined $1.27, or 2.59%, 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 jumped 95 cents, or 2.05%, to trade at $49.34 a barrel. On Monday, New York-traded oil prices tumbled $1.31, or 2.75%.
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.