BP chief - oil markets will balance at $ 50

Rising oil demand in China, North America and Europe will help bring global oil markets into balance this year, BP Plc CEO Bob Dudley said.

“Global supply and demand has moved towards a better balance lately and we expect this trend to continue into the second half of 2016 and possibly reach the end of the year on an ongoing basis,” Dudley said in a speech at the Economic Forum in Washington. "Oil is likely to hit $ 50 a barrel by the end of the year and between $ 50 and $ 60 next year," Dudley added.

Oil prices in New York have jumped about 90% since hitting a 12-year low in February, hovering around $ 50 a barrel, while US production has slumped and there have been supply disruptions in Nigeria and Canada. But oil is still worth less than half of its mid-2014 high, prompting BP and other producers to cut costs and postpone new projects. This approach will continue even in BP.

“We do not expect oil to return to $ 100 a barrel anytime soon, so we have to maintain our discipline and continue to improve our productivity or we may not be able to survive,” he said. “We have about 40 projects that look economically viable today and we will see results in the early 2020s.”