22nd January 2015
The boss of multi-national BP has said that the oil price could remain low for up to three years.
BBC News reports that the oil-major’s chief Bob Dudley asserted that this in turn could push UK petrol prices below the £1 per litre mark.
Speaking to the BBC in Davos, he said that his firm was planning for low oil prices over the coming years, which is expected to drive job losses and falling investment in the North Sea oil industry.
He said: “Companies like us, at BP, we’re going to need to rebase the company based on no guarantees at all that the price will come back up.”
“We have got to plan on this being down, and we don’t know exactly what level, but certainly a year, I think probably two and maybe three years.
“If prices keep going down, I’m sure you will see £1 per litre.”
In the period between 2010 and summer last year, oil prices remained relatively static at around $110 per barrel.
But since then the oil price has dramatically plummeted and today Brent crude and WTI are trading at just under $50 a barrel.