Investing.com - Oil prices were under pressure in North American trade on Tuesday, snapping a strong two-day rally, as uncertainty about the Brexit referendum continued to preoccupy investors.
Concerns over a possible Brexit lingered after a series of recent polls showed that voters remained evenly split ahead of Thursday's highly-anticipated vote.
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.
On the ICE Futures Exchange in London, Brent oil for August delivery tumbled $1.07, or 2.11%, to trade at $49.58 a barrel by 13:36GMT, or 9:36AM ET.
On Monday, London-traded Brent futures rallied $1.48, or 3.01%, as worries eased about the upcoming referendum in the U.K. on European Union membership, spurring a rally in risk-sensitive assets.
Elsewhere, crude oil for August delivery on the New York Mercantile Exchange shed 95 cents, or 1.88%, to trade at $49.01 a barrel, after soaring $1.40, or 2.88%, a day earlier.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.9 million barrels in the week ended June 17.
Industry group Genscape on Monday reported a drawdown of 568,213 barrels at the Cushing, Oklahoma delivery point for WTI futures during the week to June 17.
Signs of a potential recovery in domestic drilling activity remained in focus. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. increased by nine last week to 337, the third straight weekly rise.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
Meanwhile, Brent's premium to the WTI crude contract stood at 57 cents a barrel, compared to a gap of 69 cents by close of trade on Monday.