IMF worries bruise crude oil prices

NEW YORK, Sept. 28 (UPI) -- Expectations from the International Monetary Fund of a weakening global economy pushed crude oil prices down more than 2 percent in early Monday trading.

IMF managing director Christine Lagarde told French newspaper The Echoes the global economy was recovering from the latest recession, but the pace is decelerating.

"A global gross domestic product of 3.3 percent this year is no longer realistic. A forecast of 3.8 percent for next year is not either," she said. "We still remain above the 3 percent threshold."

A surplus of crude oil on the international market and weak demand has pushed crude oil prices to historic lows.

Brent crude oil was down 2.1 percent in early Monday trading to $47.55 per barrel, down about 50 percent from last year. West Texas Intermediate, the U.S. benchmark for crude oil prices, was down nearly 2.4 percent from the previous session to $44.62.

Early 2015 concerns about mounting Greek debt sparked concerns about growth in a stagnant European economy. More recently, signs of a slowdown in China, a lead oil consumer, put downward pressure on crude oil prices. Net gains in the U.S. labor market, meanwhile, overshadow signs the weak crude oil market is creating economic troubles in producer states like Texas.

Gerry Rice, a spokesman for the IMF, said last week all players in the global economy need to be vigilant.

"We are in an interconnected world," he said. "The spillovers are increasingly significant."

The IMF releases a formal forecast late Monday.