* Brent crude drops below $50/bbl, WTI under $48.50/bbl
* Asian economic outlook darkens, weighs on demand outlook
* Stronger dollar also drags on oil prices
By Henning Gloystein
SINGAPORE, June 13 (Reuters) - Oil prices fell in early
trading on Monday, pulled down by rising economic concerns in
Asia and a related strengthening in the U.S. dollar, which makes
fuel imports for countries using other currencies more
expensive.
International Brent crude oil futures LCOc1 fell back
below $50 per barrel, trading at $49.89 at 0127 GMT, down 65
cents, or 1.29 percent, from their last settlement.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 78
cents, or over 1.5 percent, at $48.29 a barrel.
ANZ bank said that oil was being pulled down by a sharp
reduction in risk appetite and a "U.S.-dollar and treasuries
rally".
The dollar has recovered some 1.3 percent from June lows
against a basket of other leading currencies .DXY , pushed by
the prospect of a potential hike in U.S. interest rates and by
concerns over Asia's economy, which is dragging currencies
there.
A stronger greenback makes dollar-traded oil imports more
expensive for countries using other currencies, potentially
hitting demand and weighing on prices.
But the main concerns in oil markets was Asia's darkening
economic outlook.
Japan's business survey index (BSI) of sentiment at large
manufacturers stood at minus 11.1 in April-June, compared with
minus 7.9 in January-March, according to a joint survey by the
Ministry of Finance and the Economic and Social Research
Institute, an arm of the Cabinet Office.
There are also worries about growth in China, largely due to
industrial overcapacity and spiralling debt.
With Asia's economic growth outlook darkening, many oil
speculators have sold out of long positions which have been
profiting from an almost doubling in crude prices since hitting
over decade lows earlier this year.
Hedge funds and other big speculators cut their net-long, or
bullish, position in U.S. crude this week for the first time in
a month, trade data showed on Friday, indicating concern the oil
market may not be sustained at $50 a barrel.
Despite this, some analysts expect oil demand in Asia and
especially China to remain strong.
"Against the backdrop of low international oil prices,
Chinese crude oil demand will remain well supported this year as
demand continues to gain traction from stockpiling activities
and refining use," energy consultancy FGE said in its June
outlook.
"We expect Chinese crude oil imports to grow by
730,000-760,00 barrels per day this year," it said.
It added that "elevated Chinese crude oil imports will no
doubt help to support the global crude oil market".