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Global growth is projected at 3.5 percent for 2015 and 3.7
percent for 2016, the IMF said in its latest World Economic
Outlook report, reducing its forecast by 0.3 percentage points
for both years.
"New factors supporting growth - lower oil prices, but also
depreciation of euro and yen - are more than offset by
persistent negative forces," said Olivier Blanchard, the IMF's
chief economist.
Brent crude was up 16 cents at $49.00 a barrel by 1225 GMT. U.S.
crude, also known as West Texas Intermediate or WTI, was trading
at $47.52, down $1.17 from Friday's close. U.S. markets were
closed on Monday for a public holiday.
BNP Paribas analyst Harry Tchilinguirian said the IMF forecast
cut was widely expected.
"We're still trading sub $50 on both WTI and Brent, I think
that's really the main message," he said.
Oil prices have dropped by more than half since June as output
has soared while demand growth has slowed.
Members of the Organization of the Petroleum Exporting Countries
have said they are leaving the oil market to find its own level
and hope lower fuel prices will stimulate more demand in the
long run.
"We are having an adjustment in prices to the new oil order that
has been imposed on OPEC," said Tchilinguirian.
Cartel member Nigeria said on Tuesday the Trans Forcados oil and
gas pipeline and related production have been shut down after
vandalism at the weekend caused an oil spill.
Oil major Shell said Nigeria's Trans Escravos and Nembe Creek
pipelines had also been closed.
Weak economic data from China on Tuesday put downward pressure
on oil markets.
The world's second-largest economy and biggest energy consumer
grew 7.4 percent last year, China's National Bureau of
Statistics said, less than the target of 7.5 percent and its
weakest annual expansion in 24 years.
But China's implied oil demand grew 3 percent in 2014, consuming
roughly 10.06 million barrels per day (bpd) of oil in 2014,
according to Reuters calculations.
(Additional reporting by Henning Gloystein in Singapore and Jake
Spring in Beijing; Editing by Christopher Johnson)
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