BP: Oil Market Balance in 6 Months

BP: Oil Market Balance in 6 Months

The slump in global oil prices could hit bottom in early 2016, although prices are likely to remain low for the next couple of years, BP Chief Executive Officer Bob Dudley said.
"A low point could be in the first quarter," Dudley said in BBC's radio interview broadcast on Saturday, Reuters reported.
Brent crude prices fell by 34% last year after shedding 48% in 2014. The plunge in global oil prices has pushed inflation close to or below zero in many countries, helping consumers but wrong-footing central banks. Dudley said a more natural balance between supply and demand could come back in the third and fourth quarter of this year, after which stock levels could start to wear off.
"Prices are going to stay lower for longer, we have said it and I think we are in this for a couple of years. For sure, there is a boom-and-bust cycle here," Dudley said.
Dudley also said he did not agree with Bank of England Governor Mark Carney's use of the term "stranded assets" to describe oil and gas reserves held by companies but which may prove unviable as the world moves to a low-carbon economy.
Carney used the phrase in a speech in September in which he called on companies to be more open about their "climate change footprint" to avoid abrupt changes in asset prices that could destabilize markets.
"I think the term overstates it quite frankly and I have spoken to the governor about it and I have questioned that term," Dudley said in the interview.
"BP shareholders were already aware of the viability of the company's assets, which were only counted as reserves if they were economic."

Short URL : http://goo.gl/SjHEzF
  1. http://goo.gl/A2cFz2
  • http://goo.gl/WQVt7U
  • http://goo.gl/MzSlHx
  • http://goo.gl/v5d0Wh
  • http://goo.gl/LfiIeR

You can also read ...

Russia, Turkey Sign Pipeline Agreement
Russian state gas giant Gazprom said on Saturday it had signed...
Four solar plants, with a total capacity of 33.5 MW, have come on stream in Yazd Province.
The central Yazd Province’s solar power production capacity...
Shell is a strategic partner of Petrobras in the pre-salt layer.
Shell was the only company expressing interest in purchasing...
Novak: Oil Output Could Rise to October 2016 Level
A return to oil production levels that were in place in...
Currently, 80,000 barrels per day of crude are extracted from North Azadegan Oilfield.
The tender results for developing North Azadegan Oilfield in...
SOCAR to Expand Gas Storage Capacity
There are plans to expand underground gas storage facilities...
The steady gas supply to neighboring states has caused international markets to trust Iran.
Natural gas exports experienced a 60% hike during the fiscal...
Annual Potable Water Consumption at 7.5 bcm
Potable water consumption amounts to a massive 7.5 billion...