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Oil prices remained steady, led by the heightened shock of last week’s vote in Great Britain leaving the European Union, as well as the Brexit would create a limited impact on global fuel demand, according to analysts.

Brent crude futures rallied by about 17 cents and settled at $48.58 per barrel, while U.S. crude increased 2 cents at $47.66 per barrel.

Meanwhile, both crude benchmarks declined 5 percent at the close amid the weakening global financial markets, fueled by the referendum results resisted by bookmakers’ odds to indicate a 52 percent to 48 percent victory for the campaign to put effort taking out Britain from the EU.

However, prices regained some losses as analysts said that Britain’s EU exit suggests a slight impact on physical oil trading.

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"If we assume a 2 percent drop in UK GDP in response to the exit vote, which is on the high end of our economists' estimates, then UK oil demand would likely be reduced by 1 percent or 16,000 barrels per day, which is a 0.016 percent hit to global demand. This is extremely small on any measure." said Goldman Sachs.

Brexit seemed to lead to further volatility in financial markets, according to British finance minister George Osborne, but the fifth-biggest economy in the world would certainly deal with the challenge ahead.

Refined Product Glut

Heightened worries over the market creates refined product glut.

Morgan Stanley stated to clients, "For near term oil, we remain most concerned about product oversupply, China demand, the macro outlook, and the likely return of production." 

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With the glut in the Asian oil products, refiners of China have taken an action by exporting record amounts of gasoline, including diesel fuel across the markets in the region, wearing away refinery profit margins and growing storage.

As part of the outcome, analysts said that refiners might think of dialing back production and limit orders for their main feedstock crude oil, possibly weighing on prices.

Brexit’s larger political and policy repercussions cannot be overlooked, according to Morgan Stanley.

"Europe is a big trading partner for the United States and China, which could lead to knock on global effects, and a stronger dollar is generally unhelpful for demand," Morgan Stanley said.

"In a high stress case, our economists see global GDP slowing to 2.7 percent in 2017 -- nearly a global recession."