TOKYO Oil prices were up slightly in early Asian trading on Wednesday after sharp falls in the prior session, but gains were limited by ongoing concerns about the economic impact of Britain's vote to leave the European Union and a glut of crude.
U.S. crude was up 13 cents $46.73 a barrel at 0017 GMT (8:17 p.m. EDT on Tuesday). The contract fell 5 percent to end at $46.60 on Tuesday as U.S. investors got to digest news of an OPEC increase in production after the July 4 holiday on Monday closed trading.
Brent futures were up 17 cents at $48.13. On Tuesday they settled down 4.3 percent at $47.96 a barrel.
Oil prices are up almost 80 percent from 12-year lows of around $27 for Brent and $26 for U.S. crude in the first quarter and they are ripe for supply shocks just as the so-called Brexit vote came as a body blow to global growth hopes.
The rebound in crude was fueled by supply outages from Canada to Nigeria that created the perception that a two-year-old supply glut may be easing.
But OPEC's oil output in June was its highest in recent history, as Nigeria's oil industry partially recovered from militant attacks and Iran and Gulf members boost supplies.
The yen rose further on Wednesday as investors hit the shelters with broad risk off mood gripping wider markets.
Sterling sank to a fresh 31-year trough early on Wednesday, having taken a turn for the worse as the first signs of markets seizing up emerged in the UK following the Brexit vote.
(Reporting by Aaron Sheldrick; Editing by Ed Davies)
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Updated Date: Jul 06, 2016 06:45:07 IST