Oil prices fell on Thursday due to a stronger dollar and a gloomy economic outlook from the World Bank, while a bullish report about global demand from the International Energy Agency (IEA) failed to dispel concerns about a supply glut.
In its twice-yearly Global Economic Prospects report, the World Bank predicted the global economy would expand by 2.8 percent this year, below its 3 percent outlook in January, with India recording the biggest growth of major economies for the first time, ahead of slowing China.
Meanwhile the IEA, which coordinates energy policy for industrial nations, raised its projection for global oil demand growth in 2015 by 280,000 barrels per day (bpd) to 1.40 million bpd, bringing demand this year to almost 94 million bpd.
The agency said “unexpectedly strong global oil demand growth” had been supporting oil prices and raised its estimate for world demand for crude from OPEC this year.
Brent crude oil for July LCOc1 shed 51 cents, to trade at $65.19 a barrel by 6.35 a.m. EDT. U.S. crude CLc1 was down 60 cents at $60.83 a barrel.