Oil prices extended gains in Asia Monday thanks to a weaker U.S. dollar and easing fears of Britain's exit from the European Union.

The U.S. dollar fell for the fourth day in a row on Monday, trading lower against most major currencies, making U.S. dollar-priced oil cheaper for those using other currencies.

At about 0710 GMT, U.S. benchmark West Texas Intermediate for July delivery was up 53 cents, or 1.10 percent at US$48.41 a barrel.

International benchmark North Sea Brent for August delivery was up 58 cents, or 1.18 percent, at US$49.75 a barrel.

The commodity is recovering after seeing sharp spikes and dips in the past fortnight in a jittery market.

U.S. crude last week plunged nearly 10 percent in six days after hitting 11-month highs the previous week, while European Brent had given up nine percent.

"The biggest factor this week may well be currency, particularly given the uncertainty around the Brexit vote," Michael McCarthy, a chief strategist at CMC Markets in Sydney, told Bloomberg News.

"The widely shared view that the market will be balanced by the end of the year is keeping a bit of support in place. Oil above US$50 will tempt the highly agile U.S. shale producers back into action, so that should keep a cap on prices," he said.

Markets had been worried about a potential Brexit when polls showed the Leave camp gaining momentum. The IMF and Bank of England have warned such a move might lead to a recession with a global spillover.

But opinion polls over the weekend showed the Remain camp gaining ground just days before the vote, boosting equity markets around the world.

"Judging by the market reaction over the last two days, more volatility is likely this week," CMC Markets analyst Margaret Yang wrote in a note.

She added: "It is expected that a vote to remain would lead to a quick unwinding of risk premium and a substantial risk-on rally, whereas a Brexit vote would have the opposite effect."

Source: China Post