Investing.com - Oil prices rallied in North American trade on Thursday, amid indications that Britain would vote to remain in the European Union in a highly anticipated referendum.
The vote on a potential Brexit was set to take place between 6:00GMT, or 7:00AM London time, and 21:00GMT, or 10:00PM in London, with results expected early Friday morning.
Recent polls indicated that the remain campaign was in the lead, spurring "risk-on" sentiment across the globe.
On the ICE Futures Exchange in London, Brent oil for August delivery tacked on 85 cents, or 1.7%, to trade at $50.73 a barrel by 13:35GMT, or 9:35AM ET, after hitting a daily peak of $50.90.
On Wednesday, London-traded Brent futures declined 74 cents, or 1.46%, as investors counted down to the upcoming British vote to decide whether to remain in the European Union.
Elsewhere, crude oil for July delivery on the New York Mercantile Exchange rose 74 cents, or 1.51%, to trade at $49.87 a barrel.
A day earlier, New York-traded oil prices shed 72 cents, or 1.44%, after data showed that oil supplies in the U.S. fell much less than expected last week.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories declined by 0.9 million barrels last week to 530.6 million. Market analysts' expected a crude-stock decline of 1.7 million barrels.
U.S. crude futures are up nearly 85% since falling to 13-year lows at $26.05 on February 11 as a decline in U.S. shale production boosted sentiment. However, with prices now at levels that make drilling economical for some firms, the rig count might start rising soon and the decline in U.S. production may slow.
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 86 cents a barrel, compared to a gap of 75 cents by close of trade on Wednesday.