Oil prices rose on Friday for the first time in a week as the dollar fell and investors in global markets cautiously bought some riskier assets as anxiety eased about Britain's possible exit from the European Union.
Crude futures were still on track for a weekly loss after daily declines Monday through Thursday.Brent crude futures' front-month contract were up $1.28, or 2.7 per cent, at $48.47 a barrel by 1514 GMT.
The front-month in US crude's West Texas Intermediate (WTI) futures rose $1.18, or 2.5 per cent, to $47.39. For the week, Brent was down 4 per cent and WTI about 3 per cent.
More From This Section
On Friday, Britain mourned the death of UK member of parliament Jo Cox, a day after the vocal advocate for Britain remaining in the union was murdered. Her death threw next week's referendum on EU membership into limbo.
The dollar fell about a quarter per cent, retreating from its 2-week high on Thursday that had weighed on demand for greenback-denominated oil from the holders of the euro and other currencies.
Some analysts cautioned that with UK's future EU still unknown until a vote next Thursday, oil could come under pressure again.
"It's mainly Brexit at the moment, at least until next Thursday, before people start to look at the more fundamental oil/commodity drivers again," ABN Amro's senior energy economist Hans van Cleef said.
Julian Jessop, chief economist and head of commodities research at Capital Economics, told Reuters Global Oil Forum that a Brexit situation could lead to a sharp oil selloff sending Brent to as low as $40.
In industry news, global oil majors Chevron and Royal Dutch Shell were putting up small refineries for auction as they looked to trim lower-margin assets amid rising crude prices.