Oil prices have increased above $48 a barrel after investors took advantage of a fall in crude for two days following Britain’s vote to exit the European Union (EU).

Brent crude futures were 2.3% higher at $48.24 per barrel, while the US West Texas Intermediate (WTI) futures were also 2.3% higher and traded at $47.39 a barrel, Reuters reported.

Following the vote, stocks and currencies worldwide came down, although oil price losses were limited due to expectations of strong demand during summer in Asia and the US.

"Oil is recovering on some bargain hunting after the drop below $47 a barrel proved unsustainable."

Prices also gained support due to a strike at several oil and gas fields in Norway that threatened to reduce production in the country.

A strike is expected to be launched by 755 Norwegian workers on seven energy fields in the country, which may add to production outages in oil producing countries such as Nigeria and Libya.

Commerzbank analyst Carsten Fritsch told the news agency: "Oil is recovering on some bargain hunting after the drop below $47 a barrel proved unsustainable and news of a possible strike in Norwegian oil and gas industry."

After the UK voted to exit EU, oil prices fell more than 7% to seven-week lows in the previous two sessions.