Oil prices fell in Asian trade after a strong two-day rally that was fed by easing concerns Britain would leave the European Union after a referendum this week, allowing market participants to focus on supply issues.
U.S. crude's expiring July front-month contract CLN6 was down 17 cents at $49.20 a barrel at 0242 GMT. The more actively traded August contract CLQ6, the new front-month from Wednesday, was down 16 cents at $49.80. That contract settled up nearly 3 percent at $49.96 on Monday.
Brent crude futures' August front-month contract LCOc1 was down 25 cents at $50.40 a barrel.
On Monday, it climbed $1.48, or 3 percent, to $50.65 a barrel. The contract has risen about 7 percent since Thursday's settlement, after dropping 10 percent in six previous sessions.
Two opinion polls released on Monday suggested support for Britain staying in the European Union had recovered some ground following the murder of a pro-EU lawmaker last week, although a third survey found backers for a "Brexit" ahead by a whisker.
While concerns over a British exit fade into the background, however briefly, supply issues are back in focus.
Saudi Arabia's crude oil exports dropped in April despite high production levels, suggesting its battle for market share against U.S. shale drillers may be running its course.
With oil prices up more than 30 percent this year, shale drillers are looking at turning the taps on again and have proved resilient beyond Saudi and OPEC expectations.
Potentially adding to supply, Iran has increased its crude exports capacity at its main terminal on Kharg Island to allow eight tankers to load simultaneously, the oil ministry's news agency Shana reported on Monday.
Reference: Reuters
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