Oil barely changed after World Bank forecast
Oil prices barely budge as lower World Bank economic view offsets drop in US oil supplies
The price of oil bounced around before finishing with a slight gain Wednesday. U.S. supplies declined more than expected, but a reduction in the World Bank's estimate of global economic growth raised concerns about demand.
Benchmark U.S. oil for July delivery rose 5 cents to $104.40 a barrel on the New York Mercantile Exchange.
Brent crude gained 43 cents to $109.95 a barrel on the ICE Futures exchange in London. The benchmark for international oils got a boost from tensions in Iraq.
The U.S. Energy Department reported that oil supplies fell by 2.6 million barrels in the week ended June 6. Analysts expected a decline of 1.2 million barrels, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
The World Bank downgraded its forecast for the global economy this year, citing a bitter American winter and the political crisis in Ukraine. It now estimates growth of 2.8 percent, down from a previous estimate of 3.2 percent.
Geopolitical risks for energy markets were reinforced by al-Qaida-inspired militants overrunning much of the Iraqi city of Mosul on Tuesday. Mosul is in an area that is usually — though not presently — a major gateway for Iraqi oil.
In the U.S., the average price for a gallon of gasoline is $3.64, 2 cents lower than a week ago but still a penny higher than at this time last year.
In other energy futures trading on Nymex:
— Wholesale gasoline rose 3 cents to $3.00 a gallon.
— Natural gas slipped 2 cents to $4.51 per 1,000 cubic feet.
— Heating oil added 2 cents to $2.90 a gallon.
