October 31, 2017 / 8:35 AM / a year ago

BP expects oil prices of $50-$55/bbl next year - CFO

LONDON (Reuters) - BP (BP.L) is working on an assumption oil prices will average $50 (37.84 pounds) to $55 a barrel next year as global inventories gradually return to normal levels, Chief Financial Officer Brian Gilvary said on Tuesday.

FILE PHOTO: An aircraft of Korean Airlines is seen above a BP petrol station approaching to land at Zurich Airport in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann/File Photo

An agreement reached between OPEC and other major oil producing nations to limit output in order to reduce a glut is having an impact, Gilvary said, 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,” Gilvary told Reuters in an interview after BP report a doubling of profits in the third quarter.

“I think $50-$55 is a pretty good working assumption for next year,” he said.

BP’s operations will be able to generate profit next year at $50 a barrel and perhaps $45 a barrel, he added. In the longer term the company is working to reduce its breakeven level to $35 a barrel, he said.

Reporting by Ron Bousso; editing by Jason Neely

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