BP predicts oil price to settle below current $60 level

BP is working on an assumption oil prices will average $50 to $55 a barrel next year as global inventories gradually return to normal levels.

An agreement reached between Opec and other major oil-producing nations to limit output in order to reduce a glut is having an impact, said chief financial officer Brian Gilvary, but he did not expect oil prices to remain at their current levels above $60 a barrel.

“By the end of next year we will be back at a more normal stock level. It will continue to be bumpy into next year and I wouldn’t be assuming those levels of prices for next year,” said Mr Gilvary. “I think $50-$55 is a pretty good working assumption for next year.”