BP Plc (NYSE: BP) expects global oil prices to hold within a range of $45-$55 a barrel (bbl) next year as U.S. shale production grows, the British company's CFO said Aug. 1.
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 million to 1.5 million bbl/d, Brian Gilvary told Reuters.
"Global demand is looking pretty strong, and prices will firm around the levels seen today," he said.
RELATED: What's Affecting Oil Prices This Week (July 31, 2017)?
Brent crude oil prices averaged $51.71/bbl in the first half of 2017 and are currently just below $53/bbl.
Global demand was at around 95 million bbl/d in 2016.
Brent crude oil prices were expected to remain broadly unchanged in 2018 as U.S. shale production is able to expand at these levels, effectively capping prices.
"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," Gilvary said.
"For 2018 something around $45-$55 a barrel is probably a good range," he added.
Earlier BP reported a drop in second-quarter profits after an exploration write-off in Angola.
Recommended Reading
TotalEnergies Eyes Suriname FID by Year-end 2024
2024-04-29 - France’s TotalEnergies and U.S. partner APA Corp. look to place their long lead orders ahead of a final investment decision related to their joint development offshore Suriname in Block 58.
Diamondback Stockholders All in for $26B Endeavor Deal
2024-04-29 - Diamondback Energy shareholders have approved the $26 billion merger with Endeavor Energy Resources.
ProPetro to Provide eFrac Services to Exxon’s Permian Operations
2024-04-29 - ProPetro has entered a three-year agreement to provide electric hydraulic fracturing services for Exxon Mobil’s operations in the Permian Basin.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-28 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.