BP expects global oil prices to hold within a range of $45-$55 a barrel next year as U.S. shale production grows, the British company’s chief financial officer said on Tuesday.
Brian Gilvary told Reuters in London that global demand was looking pretty strong, and prices would firm around the levels seen today.
“We can now see where the price elasticity is. As the price comes up to $52-$53 a barrel, we start to see some uptick in activity, as it drops to $45, we start to see that curtailing.
“For 2018, something around $45-$55 a barrel is probably a good range.
“(This is because) after a slow start to the year, global oil demand recovered in the second quarter of 2017 and was expected to grow by 1.4 to 1.5 million barrels per day,” Gilvary said.
Brent crude oil prices averaged $51.71 a barrel in the first half of 2017 and are currently just below $53 a barrel.
Earlier BP reported a drop in second quarter profits after an exploration write-off in Angola. (Reuters/NAN)