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Oil futures fall as global growth, Brexit concerns weigh

Published 14/06/2016, 10:38 am
© Reuters.  Oil futures fall as global growth, Brexit concerns weigh
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TOKYO, June 14 (Reuters) - Crude oil futures fell in early Asian trade on Tuesday, as investors ignored signs of market tightness to focus on concerns over global growth and overnight declines in stocks on the impending vote on Britain's possible European Union exit.

Brent crude oil futures LCOc1 fell below $50 a barrel again to $49.79, down 56 cents, by 0029 GMT. On Monday the contract settled down 19 cents at $50.35 per barrel.

U.S. crude CLc1 was down 53 cents, or 1 percent, at $48.35 a barrel. The U.S. benchmark also ended down 19 cents in the previous session at $48.88 a barrel.

A stronger dollar overnight spilled over into the oil market, while uncertainty over the outcome of this week's policy meeting of the U.S. Federal Reserve is keeping the bulls at bay.

A vote by Britain to leave the European Union, dubbed "Brexit," may tip Europe back into recession, putting more pressure on the global economy.

Britain's "Out" campaign has increased its lead over the "In" camp before the June 23 referendum, according to two opinion polls published by ICM on Monday.

Concerns about Chinese growth are also weighing on sentiment, enough to set aside bullish signs such as a U.S. government forecast on Monday that shale oil output is expected to fall in July for the seventh consecutive month. also forecast on Monday that the world oil market would be more balanced in the second half of 2016 as outages in Nigeria and Canada help to speed up the erosion of a supply glut.

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