(MENAFN- ProactiveInvestors - UK) Oil prices bounced back above US$50 a barrel on Monday as commodity and equity markets breathed relief ahead of Thursday''s EU referendum.
As the vote approaches the chances of a British exit from the European Union is looking less likely, than it did last week anyway.
Last week the Leave campaign had led the polls, but momentum has apparently shifted back to Remain.
A YouGov poll for the Sunday Times showed a 1 percentage point lead for those wanting to stay in the European Union, similarly surveys carried out on behalf of the Independent and Mail on Sunday also favoured the Remain campaign.
In London, Brent crude rose around 1.6% to around US$50 whilst West Texas Intermediary futures rallied 1.5% to US$48.75.
Capital Economics reckons improved crude prices will mean more industry activity, and that will cap the rally.
''Early signs that rising crude prices have induced oil companies to bring drilling rigs back online suggest that US output could rise sooner than previously thought, especially in light of the efficiency gains made by the industry,'' Capital Economics analyst economic Simon MacAdam said in a note.
''But we still believe that overall non-OPEC supply will fall this year.''
He added: ''we are still expecting US oil production to decline significantly this year, but the recent rally in prices may have slowed this fall.
''As a result, we remain comfortable with our end-year price forecast of $45pb for WTI and Brent.''
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