Oil prices have dropped after Germany said that it would cut Britain off from the European Union (EU) single market if it votes to leave this month.

Brent crude oil futures edged down by 69 cents to $49.66 a barrel, while the US crude futures fell 77 cents to $48.11 a barrel, Reuters reported.

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The UK leaving the EU, dubbed ‘Brexit’, means Britons would no be entitled to the free movement of goods, services, and people inside the EU.

"The thought process is that if the UK leaves the EU, then the EU might slip back into recession."

PVM Oil Associates analyst Tamas Varga told the news agency: "The thought process is that if the UK leaves the EU, then the EU might slip back into recession and … that might negatively impact oil demand."

Two opinion polls published by ICM revealed that Britain’s ‘Out’ campaign has increased its lead over the ‘Remain’ camp before the 23 June referendum.

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The Brexit-backing Bruges Gropu think tank commissioned an opinium poll, which found that 52% are in favour of leaving the EU, while only 33% want to stay.

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OPEC anticipated that outages in Nigeria and Canada help to speed the erosion of a supply glut due, which the global oil market would be balanced in the second half of this year.