Asian stocks and currencies have recovered this week after Friday's global sell-off, as speculation swirls that authorities will inject fresh stimulus into financial markets.
At the Multi Commodity Exchange, crude oil for delivery in July gained Rs 50 or 1.55 percent to Rs 3,276 per barrel with a business turnover of 6,237 lots.
International Brent crude futures were trading at USD48.76 per barrel at 0019 GMT (08:19 p.m. EDT), up 18 cents from their last settlement. US West Texas Intermediate (WTI) crude was up 30 cents at USD48.15 a barrel.
Global markets took a beating Friday, with some USD 2.1 trillion wiped off valuations and the British pound plunging to 31-year lows against the dollar, while oil prices slumped more than five percent.
Global financial markets plunged on Friday as results from a referendum defied bookmakers' odds to show a 52 percent to 48 percent victory for the campaign to leave a bloc Britain joined more than 40 years ago.
Asian currency and stock markets swung wildly as the early results in the high-stakes referendum showed the camp favouring an exit leading those who want the country to remain.
As with financial markets, oil traders are closely watching the referendum as analysts warn that a British exit could see the country tumble into recession with global spillover effects.
Trading has been choppy in the run up to Thursday's vote on whether Britain leaves or stays in the European Union (EU), and is expected to remain so before results start filtering through late on Thursday or early Friday.
Traders are also waiting for the release later in the day of official US stockpiles data, hoping for an idea about demand in the world's top oil consumer, after an industry group said supplies had tumbled last week.
US crude futures' August contract , the new front month from Wednesday, had climbed 35 cents to USD 50.20 a barrel by 0039 GMT. That marked the first time it had risen above USD 50 since June 10.
Worries that Britons will vote to leave on Thursday has frayed nerves, and global investment titans Li Ka-shing and George Soros warned of economic doom if the country leaves bloc.
US crude's expiring July front-month contract was down 18 cents at USD 49.19 a barrel at 0046 GMT. The more actively traded August contract , the new front-month from Wednesday, was down 19 cents at USD 49.77. That contract settled up nearly 3 percent at USD 49.96 on Monday.
The US dollar fell for the fourth day in a row today, trading lower against most major currencies, making the dollar-priced commodity cheaper for those using other currencies and pushing up demand.
London Brent crude for August delivery was up 29 cents at USD 49.46 a barrel by 2238 GMT on Sunday, after settling up USD 1.98, or 4.2 percent, at USD 49.17 on Friday.
After yesterday's sharp losses, equities pushed higher today on bargain-buying while analysts said the killing of a pro-EU lawmaker had increased the odds Britons will vote to stay in the European Union next week.
Brent crude futures were up 25 cents at USD 47.44 a barrel at 0040 GMT. On Thursday, the contract fell 3.6 percent to USD 47.19 per barrel.
The Department of Energy said commercial inventories fell by 900,000 barrels in the week ending June 10, far fewer than the 2.33 million predicted in a Bloomberg survey, suggesting demand is easing in the world's top oil consumer.
Front-month US crude futures were down 56 cents, or 1.2 percent, at USD 47.45 a barrel at 0043 GMT. The contract fell 1 percent the previous session, the fifth straight day of declines.
After almost doubling from February to touch multi-month highs last week, the commodity tumbled along with equities markets on worries about the global outlook and Britain's EU future.
US crude fell to a three-week low as the contract dropped for a fifth day. It was trading down 68 cents at USD47.81 a barrel at 0034 GMT.
After a rally in the commodity that saw the US benchmark hit an 11-month high last week, investors are beginning to cash in and search out safe havens such as the yen and gold.
Brent crude oil futures fell below USD 50 a barrel again to USD 49.79, down 56 cents, by 0029 GMT. On Monday the contract settled down 19 cents at USD 50.35 per barrel.
The retreat comes after US benchmark West Texas Intermediate last week hit an 11-month high thank to a weaker dollar, which makes the commodity cheaper for anyone using other currencies.
International Brent crude oil futures fell back below USD 50 per barrel, trading at USD 49.89 at 0127 GMT, down 65 cents, or 1.29 percent, from their last settlement.
The losses were in line with a sell-off on equities markets from Asia to the Americas fuelled by worries about the state of the global economy.