U.S. oil falls to 3-wk low on inventory gains, Brexit fears

TOKYO, June 15 (Reuters) - Crude futures fell in early Asian
trade on Wednesday as mounting concerns about Britain's possible
exit from the European Union and a surprise build in U.S.
inventories left investors ignoring the IEA's declaration that
the oil market is now in balance.
U.S. crude CLc1 fell to a three-week low as the contract
dropped for a fifth day. It was trading down 68 cents at $47.81
a barrel at 0034 GMT.
Brent LCOc1 was also down for a fifth day to hit its
lowest in around two weeks. The global benchmark was 64 cents
lower at $49.19 a barrel.
Data from the American Petroleum Institute showed U.S. crude
inventories rose by 1.2 million barrels in the week to June 10
to 536.7 million, compared with analyst expectations for a
decrease of 2.3 million barrels. API/S
But the impending vote on the so-called Brexit is dominating
everything from currency markets to German Bunds, yields of
which fell below zero for the first time on Tuesday after new
polls showed the leave campaign is gaining over the "In" camp.
The influential Sun newspaper, long a scourge of alleged
European Union excess, also came out in support of Britain
leaving the EU.
If Britain voted to exit the EU, investors fear the bloc
could slip into recession, which in turn could undermine oil
demand.
The oil market is now in balance thanks to unplanned outages
and robust demand, particularly from emerging economies, but
this equilibrium will tilt into surplus again early next year,
the International Energy Agency said on Tuesday.
But there is plenty of oil flowing into the market with
Iran's exports on track to hit the highest in almost 4-1/2 years
in June, as shipments to Europe recover to near pre-sanctions
level, a source with knowledge of the country's crude lifting
plans has told Reuters.