CNPC warns oil slump will make it difficult to meet profit target

• China National Petroleum (PTR +1.3%) warns it will have difficulty in meeting its profit targets this year because of the recent slump in crude oil prices.
• The state-run company says it expects oil prices to decline further this quarter, that lower rates would reduce its earnings from oil sales and cut the value of its product inventories, which remain high.
• CNPC’s statement echoes that of Nomura, which is saying that U.S.-traded crude has the potential to drop below $70/bbl by year-end if OPEC fails to cut production.