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More bad news is bad news for oil prices

Global oil prices were in a heavy retreat Tuesday as the International Monetary Fund downgraded its growth forecast for 2015.

The price for Brent, the global benchmark, was off more than 3.75 percent to trade near $48 per barrel early in the Tuesday session. The price for West Texas Intermediate, the U.S. benchmark, was down more than 3.8 percent to sell for $46.86 early in the trading day.

The declines follow a downbeat report from the IMF on growth expectations for 2015. Growth for the global economy was expected at 3.5 percent this year, a 0.3 percent downward revision.

The IMF said that, while low oil prices are a net benefit for consumers, the gains were offset by adverse factors elsewhere in the global economy.

Olivier Blanchard, director of research at the IMF, said the low price of oil means different things for different economies and sectors.

"[It means] continuing struggles for the countries which show scars of the crisis, and not so for others," the director said in a statement. "Good news for countries more linked to the euro and the yen, bad news for those more linked to the dollar."

The IMF sentiment follows a string of reports expecting slow performance for 2015. With several energy sectors trimming capital spending plans, the International Labor Organization said turbulence was the prevailing trend in the coming years.

By 2019, more than 212 million people will be unemployed, up for the current 201 million.

"This means the jobs crisis is far from over so there is no place for complacency," ILO Director-General Guy Ryder said.

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