Oil futures down on U.S. stockpile report, Brexit concern | Reuters

TOKYO Oil prices fell in early Asian trade on Thursday, heading for a sixth day of declines, following a lower than expected draw on U.S. stockpiles and amid worries Britain might leave the European Union.

Front-month U.S. crude futures CLc1 were down 56 cents, or 1.2 percent, at $47.45 a barrel at 0043 GMT. The contract fell 1 percent the previous session, the fifth straight day of declines.

Brent crude LCOc1 was 44 cents, or 0.9 percent, lower at $48.53 a barrel. The contract settled down 1.7 percent on Wednesday, a fifth day it has closed lower.

U.S. crude stocks fell last week, the government said on Wednesday, but the decline was much smaller than anticipated, while gasoline stocks decreased sharply.

Crude inventories USOILC=ECI fell by 933,000 barrels in the last week, the U.S. Energy Information Administration reported, less than half the 2.3 million barrel decrease expected by analysts.

The U.S. Federal Reserve signalled on Wednesday that it still plans two U.S. rate hikes this year despite slower growth expectations, also hitting the oil market.

With a week to go before Britain votes on leaving the European Union, oil and other markets also remain in thrall to opinion polls, which are increasingly showing those supporting an exit are in the majority.

A so-called Brexit will lead to a Europe-wide recession and hit demand for oil, many analysts say.

(Reporting by Aaron Sheldrick; Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 16, 2016 07:15 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See