BP has dramatically revised its forecasts for the stuttering oil market as it braces for a price of around $50 a barrel to last for the next five years. The admission is a major revision from the oil major which less than one year ago said that it expected the oil price to return to $60 a barrel in 2017.
Bob Dudley, BP’s chief executive, said the market price is likely to remain caught in a rut between $45 a barrel and $55 for the next five years, but the group will continue to increase its cash flows by cutting its costs to break-even at a $30 market price.
“We’re on the path to being in the $30s within 5 years. At an oil price of $50 a barrel and a break-even price of $30 the company will be generating a lot of cash,” he commented.