LONDON (Reuters) - Oil prices are expected to hold between $50 and $60 a barrel as bloated global stocks fall after a deal between OPEC and other producers to trim output, BP Chief Executive Bob Dudley said on Thursday.
“It was always going to take quite a while for stocks to come down. But for the OPEC and non-OPEC producer agreement, from everything we see, there is broadly compliance in place and stock levels are coming down,” Dudley said in an interview with Reuters.
“We don’t expect a spike up in prices nor do we expect a big drop in prices. So we’re all trying to make our way in this world of between $50 and $60 and I would expect that to continue.”
The Organization of the Petroleum Exporting Countries and other producers, including Russia, are reducing crude output by about 1.8 million barrels per day (bpd) until next March in an attempt to support prices by cutting a glut of crude oil on world markets.
OPEC top producer Saudi Arabia and several other countries have held talks in recent days on a possible extension of the deal.
Reporting by Ron Bousso, Dmitry Zhdannikov and Karolin Schaps; editing by Jason Neely