Oil prices topped $48 a barrel on June 28 as investors took advantage of a two-day slide in crude triggered by Britain's vote to leave the European Union.
The vote's impact on oil, despite sending global stocks and currencies spiraling, has so far been limited due to expectations of strong summer demand in Asia and the U.S. and tightening supplies after a two-year rout.
A looming strike at several Norwegian oil and gas fields which threatened to cut output in western Europe's biggest producer also helped support prices on June 28.
Brent crude futures were up 2.5%, or $1.17, at $48.33 per barrel at 6:16 a.m. CT (11:16 GMT).
U.S. West Texas Intermediate (WTI) futures were 2.6% higher, up $1.22 at $47.55 a barrel.
A report by industry monitor Genscape that showed a 1.3 million barrel fall in crude inventories at the benchmark's pricing hub in Cushing, Okla., added further support, brokerage PVM said.
Sterling and London's FTSE 100 stock market index also rose on hopes of a coordinated central bank response to financial market losses.
"Oil is recovering on some bargain hunting after the drop below $47 a barrel proved unsustainable and news of a possible strike in Norwegian oil and gas industry," said Commerzbank analyst Carsten Fritsch.
He said the turmoil in Europe was not expected to have a "meaningful impact on the physical global supply and demand balances."
Over its two previous sessions oil fell more than 7% to seven-week lows as the Brexit vote cooled investor appetite for volatile commodities such as oil.
RELATED: Brexit: Five Questions And Answers For Oil Demand, Supply And Prices
A strike in Norway, which could start on July 2, would add to a number of production outages in oil-producing countries including Nigeria.
Still, news that a successful ceasefire in Nigeria had allowed repairs to oil pipelines weighed on the market, ANZ Bank said.
Oil production in Nigeria has risen to about 1.9 million barrels per day from 1.6 million, a state oil company spokesman said on June 27.
Recommended Reading
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
From Restructuring to Reinvention, Weatherford Upbeat on Upcycle
2024-02-11 - Weatherford CEO Girish Saligram charts course for growth as the company looks to enter the third year of what appears to be a long upcycle.