Oil prices fell today, on track for their fifth straight daily decline, as global markets slid on worries that Britain might leave the European Union, although crude futures pared losses after US government data showed a draw in crude stockpiles.
US crude stockpiles fell by 933,000 barrels last week, the Energy Information Administration (EIA) said, less than half the 2.3 million-barrel draw anticipated by the market.
"It's a mixed bag," Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland, said of the data.
The EIA also reported a bigger-than-expected drawdown in gasoline versus an unexpected build in distillates, which include diesel.
"In short, this data will do little to move the needle in either direction for oil prices and the energy market will continue to get its cue from macro-economic environment and global equity markets."
US crude's West Texas Intermediate futures slid 2% early, then briefly turned positive and were down 10 cents, or 0.2%, at $48.39 a barrel by 4.38pm Irish time.
Brent crude futures were down 40 cents, or 0.8%, at $49.43 a barrel, after trading as low as $48.67 earlier.
Oil prices have declined for the four straight previous sessions, their longest such stretch since February.
Crude is down more than 5% since hitting 2016 highs of nearly $53 a barrel on supply disruptions mostly out of Nigeria and Canada.
The dollar dipped against a basket of currencies, but remained close to its highest point since 3 June, as investors worried that Britain could vote to leave the EU.
A stronger dollar makes crude, priced in the U.S. currency, costlier in the euro and others.
The US Federal Reserve is expected to say it left interest rates unchanged in a statement due 7pm Irish time after its June meeting today.
The market still expects a July rate hike, but will watch the Fed statement for clues.
"The Fed decision later this afternoon will be the next driver," said Tariq Zahir, crude trader and managing partner at Tyche Capital Advisors in New York.
"We may get an idea of how much of a dove or a hawk the Fed will be come July."
A note by Goldman Sachs weighed on sentiment in oil, with the Wall Street firm saying crude needs to stay within $45-$50 to ensure a supply deficit in the second half of 2016.
