* Norway oil strike would have limited impact on production
* Nigeria's output rises on tentative ceasefire
* Brexit, slowing Asia darken economic outlook
* Overall tighter markets lifted oil by over a third in H1
* But analysts expect price rises in H2 2016
(Adds comment, updates prices)
By Henning Gloystein
SINGAPORE, June 30 (Reuters) - Oil prices fell on Thursday
as the prospects for supply improved while the economic outlook
darkened, but analysts said they still expect prices to rise in
the second half of the year.
Brent crude futures LCOc1 were trading at $50.19 per
barrel at 0655 GMT, down 42 cents, or 0.83 percent, from their
last settlement. U.S. crude CLc1 was down 37 cents, or 0.74
percent, at $49.51 a barrel.
The lower prices were a result of a higher supply outlook as
well as concern over a slowing economy, compounded by Britain's
vote to leave the European Union.
"With a ceasefire in Nigeria and Canadian wildfires
(receding) oil prices may come under pressure," ANZ bank said.
"The vote to exit adds further to uncertainty in the global
economy."
In Asia's No.2 economy, Japan, industrial output slid in May
at the fastest rate in three months to its lowest level since
June 2013, in the latest sign that Asian growth is stalling.
On the supply side, fears of sharp production cuts from a
looming strike by Norway's oil sector eased as output from the
North Sea's biggest producer would only fall by about 7 percent
in case of a walk-out, according to Norway's Petroleum
Directorate.
In Nigeria, output has recovered by 200,000-300,000 barrels
per day (bpd) since mid-June after attacks on oil infrastructure
knocked out some 600,000 barrels of daily oil production to
around 1.25 million bpd, down from 2 million bpd at the
beginning of the year.
"The government (is) optimistically aiming for a return to
normal production by end-July," Goldman Sachs (NYSE:GS) said. SECOND HALF
But with markets overall tightening this year, Brent has
risen by over a third since the beginning of January, and by
around 25 percent in the second quarter. U.S. crude prices are
also up by more than a third this year.
Analysts said oil prices would rise in the second half of
2016, which kicks off on Friday, as supply and demand fall into
balance, ending a glut that pulled prices down by 70 percent
between 2014 and early-2016.
"Crude oil prices... will likely rise higher toward marginal
cost, as decline rates and field shut-ins cause a
larger-than-expected supply deficit by year-end," said analysts
at AB Bernstein, adding they expected prices to rise to $60-$70
per barrel.
U.S. crude stockpiles fell 4.1 million barrels in the week
to June 24, the sixth consecutive week of drawdowns, to 526.6
million barrels, according to the U.S. Energy Information
Administration.
U.S. crude production was at 8.62 million bpd, down from a
peak of over 9.6 million bpd last year.
(Editing by Joseph Radford)