Oil prices slipped on Monday closing to $49.28 (P2281.39) a barrel. The US could increase oil production as oil rig counts go up twice in two straight weeks. Concerns are up since it is just one week before Britain might exit the European Union (EU) through the June 23 referendum. 

The Organization of the Petroleum Exporting Countries (OPEC) has also joined forecasters calling for a less substantial decline to U.S. production going forward, Robbie Fraser, a Schneider Electric commodity analyst, told MarketWatch.

“This week as well as the next will likely see increased volatility in the markets,” The Philippine Daily Inquirer reported Bernard Aw, a strategist for IG Markets as saying in a note. “The tide surrounding the Brexit (British exit) sentiment will quickly shift as headline polls drive trading.”

“While there are no expectations for action from the Federal Reserve and the Bank of Japan, their post-decision comments will still matter,” he added. “In particular, the Fed’s economic projections will be scrutinized.”

Meanwhile, The UK will hold the EU referendum on Thursday, June 23. British, Commonwealth and Irish citizens aged 18 and above who are residents of UK or Gibraltar may vote. UK citizens who are residing overseas can also vote, as long as they have been registered to vote at an address in the UK in the last 15 years.

Its result will determine whether Britain should remain or leave the EU. This creates uncertainties for exporters and investments in Britain.

“You are already seeing some weakness in the global equities markets because of Brexit,” Nasdaq reported Alan Oster, National Australia Bank chief economist, as saying. “We expect some short-term speculations amid the rising financial uncertainties.”

Despite concerns, some analysts do not share the same views about Brexit and the impact of rig counts on oil prices. They believe that the supply and demand side of the oil market still drives the dynamics.