Investing.com - Oil prices extended overnight loses in North American trade on Wednesday, falling towards two-month lows as Brexit-related uncertainties continued to spook the market.
On the ICE Futures Exchange in London, Brent oil for September delivery fell by more than 1% to a session low of $47.17 a barrel, its weakest since June 27. It last stood at $47.67 a barrel by 13:37GMT, or 9:37AM ET, down 29 cents, or 0.6%.
A day earlier, London-traded Brent futures plunged $2.14, or 4.27%, as investors fled anything considered a risky asset amid concerns over the global economy.
There are fears that the U.K.’s shock decision to leave the European Union will push the region back into recession, putting more pressure on the global economy and undermining future oil demand prospects.
Elsewhere, crude oil for August delivery on the New York Mercantile Exchange dipped 7 cents, or 0.15%, to trade at $46.53 a barrel, after falling to a daily low of $45.92, a level not seen since June 27.
On Tuesday, New York-traded oil prices sank $2.39, or 4.88%, after industry group Genscape reported a surprise build of 230,025 barrels at the Cushing, Oklahoma delivery point for WTI futures during the week to July 1.
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 Thursday’s government report could show crude stockpiles fell by 2.5 million barrels.
The reports come out one day later than usual due to the Independence Day holiday in the U.S. on Monday.
Signs of a potential recovery in U.S. drilling activity remained in focus. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. rose by 11 last week to 341, marking the fourth increase in five weeks.
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.