AIRLINK 183.49 Decreased By ▼ -13.16 (-6.69%)
BOP 10.09 Decreased By ▼ -0.05 (-0.49%)
CNERGY 6.55 Decreased By ▼ -0.14 (-2.09%)
FCCL 33.49 Increased By ▲ 0.47 (1.42%)
FFL 16.41 Decreased By ▼ -0.24 (-1.44%)
FLYNG 23.00 Increased By ▲ 0.55 (2.45%)
HUBC 126.78 Decreased By ▼ -0.51 (-0.4%)
HUMNL 13.80 Decreased By ▼ -0.10 (-0.72%)
KEL 4.74 Decreased By ▼ -0.02 (-0.42%)
KOSM 6.39 Increased By ▲ 0.02 (0.31%)
MLCF 43.00 Increased By ▲ 0.78 (1.85%)
OGDC 213.00 Decreased By ▼ -0.03 (-0.01%)
PACE 6.99 Decreased By ▼ -0.02 (-0.29%)
PAEL 40.70 Decreased By ▼ -0.17 (-0.42%)
PIAHCLA 17.46 Increased By ▲ 0.64 (3.8%)
PIBTL 8.36 Increased By ▲ 0.07 (0.84%)
POWER 9.00 Increased By ▲ 0.18 (2.04%)
PPL 183.70 Increased By ▲ 0.13 (0.07%)
PRL 37.95 Decreased By ▼ -0.32 (-0.84%)
PTC 24.25 Increased By ▲ 0.18 (0.75%)
SEARL 95.15 Increased By ▲ 0.04 (0.04%)
SILK 1.00 No Change ▼ 0.00 (0%)
SSGC 39.69 Decreased By ▼ -0.62 (-1.54%)
SYM 17.80 Decreased By ▼ -0.41 (-2.25%)
TELE 8.69 Decreased By ▼ -0.04 (-0.46%)
TPLP 12.49 Increased By ▲ 0.28 (2.29%)
TRG 64.13 Decreased By ▼ -0.23 (-0.36%)
WAVESAPP 10.40 Decreased By ▼ -0.04 (-0.38%)
WTL 1.76 Decreased By ▼ -0.03 (-1.68%)
YOUW 4.05 Increased By ▲ 0.05 (1.25%)
BR100 11,683 Decreased By -39.8 (-0.34%)
BR30 35,224 Decreased By -134.8 (-0.38%)
KSE100 112,790 Increased By 151.8 (0.13%)
KSE30 35,472 Increased By 14.3 (0.04%)

Goldman Sachs sees the price floor for Brent crude oil at $90 per barrel in the mid-term as the global benchmark dropped to its lowest since June 2012 this week. In two reports published this week, the investment bank maintained its 12-month forecast for Brent at $100 a barrel, but said "risks to our forecast are skewed to the downside should demand growth remain lackluster."
The new Brent price floor is based on $95 per barrel average break even price to balance Opec budgets, the bank said. Stronger shale oil output from the United States, easing production disruptions in Libya, Iran and Nigeria further compounded pressure on oil prices, they said.
"Although our conviction in the $100 a barrel forecast is waning, particularly given the lack of tangible signs of a sequential acceleration in global growth, we have not lost enough conviction to change our forecasts." Brent futures slipped on Friday towards $93 a barrel, extending a three-day slide that has pushed prices to their lowest since 2012, having fallen more than 15 percent this year. Quoting its options analyst John Marshall, Goldman said investors "appear to be looking through the recent drop in the oil price as almost half is driven by dollar strength."

Copyright Reuters, 2014

Comments

Comments are closed.