* U.S. crude oil stocks up 2 mln bbls, double forecast - EIA
* World Bank cuts forecast for China growth this year
(Recasts throughout)
By Christopher Johnson
LONDON, March 18 (Reuters) - Oil fell more than 3 percent to
below $48 a barrel on Wednesday after fresh industry data
showing a build in U.S. crude oil stocks and the World Bank cut
its forecast for China's economic growth this year.
In its weekly report, the U.S. Energy Information
Administration (EIA) said crude oil stocks rose 2.0 million
barrels to 353.3 million last week. []
A Reuters poll had forecast a rise of 1 million barrels as
refinery demand remained tepid and imports increased.
The EIA also said gasoline supplies rose to 215.7 million
barrels, up by 3.2 million barrels, countering forecasts of a
1.2-million barrel drop. []
Oil had fallen earlier in the session after data from the
American Petroleum Institute on Tuesday showed crude stocks rose
much more than expected last week.
U.S. light crude for April delivery <CLc1> was down $1.30 to
$47.86 a barrel by 1500 GMT. On Tuesday, the contract gained
$1.81 to $49.16, its highest settlement since Dec. 1, 2008.
London Brent crude <LCOc1> tumbled $1.10 to $47.14.
Oil has lost around $100 from a record high of almost $150
last July as economic meltdown has cut demand for fuel
worldwide.
But prices, which sank to levels below $35 a month ago, have
since stabilised in the $40 to $50 range, as producer group OPEC
has targeted output cuts of 4.2 million barrels per day (bpd)
since last September and vowed at a meeting on Sunday to achieve
higher compliance from members to reduce production.
"WEAK ECONOMY, WEAK DEMAND"
Mike Wittner, global head of oil research at Societe
Generale, said oil prices were near the top of the range seen
over the last three months.
"I don't see any reason fundamentally why we should break
out of this range to the upside," he said. "The picture remains
the same: weak economy, weak oil demand."
Oil's gains on Tuesday were boosted by better-than-expected
U.S. housing data and inflation, which drove U.S. stocks higher
and lifted investors' risk appetite.
But other macro-economic data were not so supportive.
The World Bank cut its forecast for China's 2009 economic
growth on Wednesday and said Beijing would undermine its own
medium-term goals if it tried to offset the slowdown by further
boosting investment. []
In a quarterly economic update, the bank cut its projection
of gross domestic product growth this year to 6.5 percent from
the 7.5 percent outcome it had forecast in November. It said
there were both upward and downward risks to its outlook.
Broker MF Global said it would take a great deal to turn
around sentiment in the oil market and on the economy.
"We find it hard to rationalise a sustained push beyond this
mark," it said. "The combination of all these variables makes
the case that some length should be taken off the table here, as
the energy markets have done too much, too soon given the
prevailing fundamental and technical backdrops."
At 1815 GMT on Wednesday, the U.S. Federal Open Market
Committee will announce the outcome of a meeting on interest
rates.
(Additional reporting by Fayen Wong in Perth; editing by Keiron
Henderson)
