In its twice-yearly Global Economic Prospects report, the World Bank predicted the global economy would expand 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.

Front-month Brent crude oil prices were down 25 cents at USD 65.45 a barrel. US crude was 33 cents lower at USD 61.10 a barrel.
 
The drop in prices ended a two-day rally that had seen US crude rise close to USD 62, a level it last climbed above in May this year. The gains were driven by a big US stocks drawdown that boosted the outlook for summer fuel demand.

The US Energy Information Administration (EIA) reported that crude oil stocks shrank by 6.8 million barrels last week, their largest drop in almost a year and four times more than forecast by analysts.

Prices in North America have been buoyed recently by high gasoline demand for road vehicles as well as low production in Canada as a result of wildfires.

"In Western Canada, crude oil inventories are at their lowest level since October as maintenance shutdowns and wildfires in northern Alberta take their toll on supply," ANZ bank said.

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