Oil prices fall for first time in three days

Oil prices extended gains in Asia Monday on the back of a weaker United States dollar and easing fears of a UK exit from the European Union.

August Brent crude futures were up 90 cents at $50.07 a barrel by 0843 GMT, set for a gain of 6 percent in two trading days.

Nymex crude for July delivery, which expires on Tuesday, was up 44 USA cents at US$48.42 a barrel, after closing up US$1.77, or 3.8 per cent, on Friday. The latest BMG poll (conducted over the phone) showed “Remain” camp leading with 53.3% votes vs 46.7% votes for “Leave”.

Three opinion polls ahead of Thursday’s vote showed the “Remain” camp recovering some momentum, although the overall picture remained one of an evenly split electorate. August Brent crude on London’s ICE Futures exchange rose $0.42 to $49.59 a barrel.

Saudi Arabia’s crude oil exports dropped in April despite high production levels, suggesting its battle for market share against U.S. shale drillers may be running its course.

“The reverse correlation to the dollar index, that’s the story of the day”, said Robert Yawger, director of the futures division at Mizuho Securities USA.

Futures rose as much as 1.1 percent in NY after climbing 3.8 percent Friday. “It’s likely to be a nervous and skittish week’s trading”.

Market watchers say that while a Brexit may not have a direct effect on oil, the market could suffer collateral damage.

The report added that the price of crude oil for the reference oil round the world witnessed a remarkable increase during May 2016.

“The petroleum markets have extended Friday’s gains on a further downgrading of the risk that Britain will vote to leave the European Union in Thursday’s referendum”, said Tim Evans of Citi Futures.

Iranian Petroleum Minister Bijan Zangeneh said Saturday that his country will continue to increase crude oil production despite the drop in oil prices and will attempt to return to levels before the worldwide sanctions’ imposition.

“Investors shrugged off another rise in the US rig count, instead buoyed by continued signs that current prices are still unlikely to incentivize USA producers to increase production”, said ANZ Research.

-Jenny W. Hsu and Riva Gold contributed to this article.