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Crude oil sinks on World Bank forecast


Crude Oil prices fell to USD 66.67 per barrel losing over 4% on Monday (20th June 2009). Crude Oil prices had touched the eight-month high of USD 73.23 per barrel earlier this month on investor optimism that the U.S. economy, suffering through its worst recession in decades, may grow by the end of the year.

However, this optimism could not last longer, since the World Bank yesterday forecast of shrinkage in the global economy to the tune of 2.9% in 2009, which is worse than it was predicted in March for a contraction of 1.7 percent.

“The global recession has deepened,” the bank said, adding that economic damage to developing countries “has been much deeper and broader than previous crises.

Your worries for an increase on the price of petrol can be held for a moment. However the world’s economy could be a bigger concern now.