Oil prices gained on Tuesday after slumping for two sessions on Britain's surprise vote to leave the European Union.

Oil prices suffered the biggest two-day loss since February as the Brexit vote spurred market concerns about the economic stability of the UK and euro zone, triggering massive risk aversion among investors.

Crude prices recovered on Tuesday as European Union leaders gathered in Brussels for a two-day meeting to discuss Britain' s decision to leave the bloc, raising speculations that policy makers may take measures to limit the economic fallout.

Oil prices were also supported by a weaker U.S. dollar on Tuesday. The dollar index, which measures the greenback against six major peers, was down 0.25 percent at 96.301 in late trading.

A weaker U.S. dollar boosts investor sentiment, as it makes the dollar-denominated oil more attractive for holders of other currencies.

The West Texas Intermediate for August delivery gained 1.52 U.S.  dollars to settle at 47.85 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery added 1. 42 dollars to close at 48.58 dollars a barrel on the London ICE Futures Exchange.

Source:
courtesy of XINHUA NEWS AGENCY

by Xinhua News Agency

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