October 31, 2017 / 8:34 AM / a year ago

BP expects oil prices of $50-$55/bbl next year: CFO

LONDON (Reuters) - BP is working on an assumption oil prices will average $50 to $55 a barrel next year as global inventories gradually return to normal levels, Chief Financial Officer Brian Gilvary said on Tuesday.

FILE PHOTO: An employee pumps petrol into a car at a petrol station in Hanoi, Vietnam December 20, 2016. REUTERS/Kham/File Photo

An agreement reached between OPEC and other major oil producing nations to limit output in order to reduce a glut is having an impact, Gilvary said, but he did not expect oil prices to remain at their current levels above $60 a barrel.

“By the end of next year we will be back at a more normal stock level. It will continue to be bumpy into next year and I wouldn’t be assuming those levels of prices for next year,” Gilvary told Reuters in an interview after BP report a doubling of profits in the third quarter.

“I think $50-$55 is a pretty good working assumption for next year,” he said.

BP’s operations will be able to generate profit next year at $50 a barrel and perhaps $45 a barrel, he added. In the longer term the company is working to reduce its breakeven level to $35 a barrel, he said.

Reporting by Ron Bousso; editing by Jason Neely

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below