Crude Oil Prices Story and kse Sectors

Crude Oil Prices Story and kse Sectors

OPEC having 77% of the world’s crude reserves and currently supplying 37% of world crude supply has significant impact on market mechanism. However in the recent past we have seen that Market volatility due to speculations, dominated by a number of other factors like fluctuating US dollar and geopolitical concerns have escalated crude oil prices which have now posed serious concerns for world economies. Boone Pickens has predicted that crude oil prices could hit US$150/bbl while Goldman Sachs has forecasted average price of crude oil for the second half of 2008 at US$141/bbl. The government of Pakistan under pressure from WB and increase to consumers in phases by Dec’08 despite already increasing POL prices overnment, bodes negative for the OMCs and the refineries profitability. Any rise in the prices of POL products will also negatively impact those sectors that depend on these fuels for their production like power, industrial, transport and agriculture.