Oil price ended below 67 U.S. dollars a barrel on Monday as the World Bank lowered its global economic forecast, suggesting a deeper recession would undermine the recovery in oil demand.

Light, sweet crude for July delivery, which expired on Monday, slumped as much as 4.7 percent to the intra-day low of 66.25 dollars a barrel before settling at 66.93 dollars a barrel, trading down 2.62 dollars, on the New York Mercantile Exchange. The more active August contract lost 2.52 dollars to settle at 67.50 dollars a barrel.

According to the World Bank report, the global economy will contract 2.9 percent this year, more than its previously forecast decline of 1.7 percent, supporting the notion that fundamentals at this point do not justify the current price for crude futures.

Meanwhile, the dollar strengthened against other major currencies, reducing hedge appeal of commodities.

In London, Brent crude for August delivery dropped 2.28 dollars to 66.91 dollars a barrel on the ICE Futures exchange.

(Xinhua News Agency June 23, 2009)