Oil prices fall as WB cuts economic growth outlook

Crude oil futures fell on Thursday as the World Bank cut its global economic growth forecast, ending a two-day rally triggered by a sharp US inventory drawdown. In its twice-yearly Global Economic Prospects report, the World Bank predicted the global economy would expand 2.8 per cent this year, below its 3 per cent outlook in January, with India recording the biggest growth of major economies for the first time, ahead of slowing China. Front-month Brent crude oil prices were down 11 cents at $65.59 a barrel by 0306 ET, while US crude shed 25 cents to trade at $61.18 a barrel. In South Korea, the world's No.5 importer of crude oil, the central bank cut its policy rate by 25 basis points to a record-low 1.50 per cent in a bid to shield a tottering economy from an outbreak of a deadly respiratory disease. Despite Asia's slowing economies, Iraq on Thursday increased its July official selling price for Basra Light crude following strong demand for the grade last month, according to Reuters.