BP Chief Executive Bob Dudley expects a flood of U.S. shale and the reopening of OPEC taps to cool the oil market after crude rose above $80 a barrel this week.
U.S. President Donald Trump’s decision to exit an international nuclear deal with Iran and revive sanctions on the OPEC member country, as well as Venezuela’s plummeting output, has helped to lift oil prices to their highest since 2014.
But BP sees oil falling to between $50 and $65 a barrel due to surging shale output and OPEC’s capacity to boost production, Dudley told Reuters.
“Clearly the withdrawal of the United States from the Iran nuclear deal has brought a lot of uncertainty to the market,” he said in an interview.
Crude exports from Iran, the third-largest member of the Organization of the Petroleum Exporting Countries, could drop by 300,000 to 1 million barrels per day (bpd) as a result of U.S. sanctions, the CEO said, citing internal BP forecasts. Read More