The boss of oil giant BP Bob Dudley has said that oil prices could remain low for up to three years. He added that could send UK petrol prices below £1 per litre. He told BBC Business editor Kamal Ahmed in Davos BP was planning for low oil prices for years to come. That is expected to lead to job losses and falling investment in the North Sea oil industry and elsewhere, curbing supply and eventually forcing the price back up.
Italian oil group Eni has said the next spike could be around $200 a barrel. Eni’s chief executive, Claudio Descalzi, said the oil industry would cut capital spending by 10-13% this year because of slumping prices. He said that would create longer-term shortages and sharp price rises in four to five years’ time, if the Opec cartel fails to cut supplies. Mr Descalzi was speaking at the World Economic Forum in the Swiss resort of Davos.