LONDON – Oil prices fell on Friday after Goldman Sachs cut its crude forecasts, citing global over-supply and concerns over the health of the Chinese economy, and after Saudi Arabia dismissed the idea of an oil producer summit.
Joining a long list of banks cutting their price forecasts, Goldman Sachs on Friday reduced its 2015 U.S. crude oil forecast to $48.10 a barrel, down from $52. The bank lowered its 2016 forecast for U.S. crude to $45 from $57.
Goldman cut its 2015 Brent price forecast to $53.70 a barrel from $58.20, and said it saw 2016 Brent prices at $49.50, down from its earlier $62 forecast.
Brent for October was down $1.00 at $47.89 a barrel by 0830 GMT. U.S. crude, also known as West Texas Intermediate or WTI, was down $1.05 at $44.87 a barrel.
Investors largely ignored a relatively bullish report from the International Energy Agency (IEA).
The agency said a move by the world's big oil exporters in OPEC, led by Saudi Arabia, to defend their market share by not reducing production appeared to be working.
"Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea," the IEA said in its monthly report.
The IEA said the closure of some non-OPEC oil production "may result in the loss next year of half a million barrels a day – the biggest decline in 24 years".
Core members of the Organization of the Petroleum Exporting Countries see no reason to cut production, despite the fall in oil prices.
Saudi Arabia thinks a summit of oil-producing countries would fail to produce concrete action toward defending prices, sources familiar with the matter said on Thursday.
The comments followed a meeting of Gulf Arab oil ministers with Qatar's emir in Doha, at which Venezuela's proposal for an OPEC and non-OPEC summit was discussed.
Oil prices rallied on Thursday after U.S. Energy Information Administration (EIA) data showed demand for gasoline over the latest four-week period rose almost 4 percent from a year ago.
Crude inventories rose 2.6 million barrels to 458 million barrels in the past week, compared with analysts' expectations for an increase of 933,000 barrels.–Reuters
About 92 News HD Live Main TV Channel of Pakistan:
92 News (also known as 92 News HD Plus (Channel 92) is a conservative Urdu language TV channel based in Lahore, Pakistan.
Mian Muhammad Hanif is the chairman of the channel.
This TV channel is a subsidiary of Madinah Group under Galaxy Media Group.
The channel's name, 92, is to celebrate the 1992 Cricket World Cup won by Pakistan. The number 92 is also the telephone country calling code of Pakistan, which is another major reason behind the channel's name.
92 News HD is Pakistan’s first HD Plus News Channel. Aims to bring credible & responsible News & important stories from Pakistan & around the World
We bring you Latest Pakistani and International News at 92 News Hd Plus to Read and Watch
We believe in genuine and true journalism, we do not prevail sensation just for ratings.
We do not hide news but never tend to add any unethical content or angling that goes against the norms of our religion Islam and Pakistan's culture.
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