BP believes that the OPEC countries and Russia is unlikely to cut oil production

BP believes that the OPEC countries and Russia is unlikely to cut oil production

Oil Russia is likely to remain stable, said the head of British oil giant BP Plc Bob Dudley, noting that the maximum reduction, which he admits, is 1-2%.

MOSCOW, 2 Feb. The head of British oil giant BP Plc Bob Dudley believes that OPEC and other producers, in particular Russia, is unlikely to cut oil production to support oil prices, he said in an interview with Bloomberg.

“I don’t think it will happen,” he said.

Answering the question of the relative likely reduce oil production by Russia, he said: “I’m not sure rather it will remain stable, the maximum possible reduction of 1-2%. But I can see that oil production in the US falls, and I think in April we will receive one million barrels of oil a day less than in April last year”.

Dudley said he did not expect preservation of the current level of oil prices throughout the year. “I think, in the first and second quarter, when the market will come from Iranian oil storage facilities, possible price fluctuations, but the third and fourth quarter we will see a recovery in demand. The world produces 93 million barrels of oil a day, and we are talking about the extra one million barrels of this surplus must be offset by the end of the year”, — said the head of BP.

In addition, according to Dudley, the oil prices in the first quarter of 2016, will likely be lower than a year ago. He explained that low oil prices will persist “for a long time, but not forever.” Dudley added that BP will be able to keep the budget at an oil price of 60 dollars per barrel, but the threshold of profitability is reduced due to the reduction in cost of production due to the devaluation.

Earlier the head of Ministry Alexander Novak said that the decline in production in each country within 5% may be the subject of discussion at the planned meeting of OPEC in February, but you need General agreement. However, the Bloomberg after statements of the Russian Minister said referring to the delegates from OPEC that the meeting to discuss a possible production decline is not planned yet.