Investing.com - Oil prices turned lower on Monday as markets continued to be hit by the fallout of Britain’s shock vote to quit the European Union, which sent investors scrambling into safe haven assets.
Global benchmark Brent was trading at $48.18 a barrel by 0948 ET on Monday, down 89 cents from its last settlement.
U.S. crude for delivery in August was down 98 cents at $46.62 a barrel.
Both contracts posted their largest one-day percentage decline since February on Friday, falling around 5%.
Global markets plunged on Friday as the decision by the U.K. to exit the EU shocked investors and traders around the world expecting the opposite result.
Oil prices had risen earlier Monday as analysts said Brexit would have little impact on supply and demand in the global oil market.
The U.K. accounts for less than 2% of the world’s oil demand.
But the pound fell to fresh 31-year lows on Monday, sending the dollar soaring.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.96% at 96.55.
A stronger dollar makes oil more expensive for traders using other currencies, typically pressuring prices lower.
Also Friday, Baker Hughes said that the number of rigs drilling for oil in the U.S. fell last week for the first time in four weeks.
The rising rig count in recent weeks had fueled concerns that price of around $50 a barrel could encourage U.S. producers to increase output and flood the still-oversupplied oil market.
Oil prices have rebounded more than 80% after dropping to 13-year lows in the first quarter of 2016 on the view that the global supply glut is shrinking.
But some analysts have cautioned that the market is still oversupplied and prices could fall in the coming months.