* OPEC sees oil supply more balanced in second half of year
* Asia's darkening economic outlook weighs on markets
* Brexit worries pull stocks lower, support dollar
* Strong China vehicle sales supportive of demand
(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, June 13 (Reuters) - Oil prices edged lower on
Monday, pressured by a strong U.S. dollar and gloomy economic
prospects in Europe and Asia, but supported by ongoing supply
outages in Nigeria.
The Organization of the Petroleum Exporting Countries said
production fell by 100,000 barrels per day (bpd) in May led by
Nigeria, while pointing to a supply deficit in the second half
of the year if the group keeps pumping at May's rate.
Brent crude oil futures LCOc1 settled down 19 cents, or
0.4 percent, at $50.35 per barrel, while U.S. crude CLc1 ended
19 cents, or 0.4 percent, lower at $48.88 a barrel.
Last week, prices hit 2016 highs above $50 a barrel on
worries about sabotage of oil facilities in Nigeria.
The dollar .DXY has risen about 1.4 percent from June
lows, lifted by Brexit worries, concerns about Asia and
nervousness about a potential U.S. rate hike. USD/ A strong
dollar makes fuel imports more expensive for countries using
other currencies.
"Bit of an inflection point for the oil markets right now
with macro factors and the rising rig count weighing in on the
negative sentiment while the Niger Delta Avengers are a good
reminder that geopolitics will likely get worse before they get
better," said Michael Tran, director of energy strategy at RBC
Capital Markets in New York.
Worries that Britain will vote to leave the European Union
sent stocks tumbling, and could further dent oil's recent gains,
traders said. There are also concerns about faltering growth in
China, largely due to industrial overcapacity and spiralling
debt. MKTS/GLOB
"Investors seem to have backed away from buying ahead of
either this week's FOMC meeting or Britain's referendum on EU
membership on June 23," said Tim Evans, energy futures
specialist at Citi Futures.
Uncertainty over this week's U.S. Federal Open Market
Committee policy meeting has pressured oil, though the U.S.
central bank is expected to leave rates unchanged.
Two weeks of increasing U.S. rig counts have made some
investors nervous about rising crude production.
Oil traders have already sold out of long positions that
profited from a sharp rebound in crude prices from the lowest
levels in more than a decade.
However, continued supply outages have buoyed prices.
On Monday, the Niger Delta Avengers group, which has claimed
most of the latest attacks on Nigeria's oil infrastructure,
spurned proposed talks with the government.
Additionally, 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.
"We expect Chinese crude oil imports to grow by
730,000-760,00 bpd this year," it said.