BLOOMBERG – BP Plc (BP/) has the right investments to allow it to cope with oil prices that have tumbled to $80 a barrel, according to Chief Executive Officer Bob Dudley.
“We’ve positioned the company to weather any shocks,” the head of Europe’s third-largest oil company said at the Oil & Money conference today in London. “We make investment decisions based on an $80 price.”
Brent crude, a global benchmark for oil prices, has fallen more than 20 percent this year on concerns world economies will slow, while output resumes in places like Libya after political turmoil eased and more fuel from shale is extracted in the U.S. The grade has traded below $90 a barrel for the past two weeks.
European and U.S. sanctions on Russia after the country’s annexation of Crimea from Ukraine this year haven’t affected BP directly, Dudley said. It has almost 20 percent of OAO Rosneft.
“We are a long-term investor,” the head of London-based BP said. “I’m confident this will remain a good investment.”
Yesterday, BP Chief Financial Officer Brian Gilvary said oil at $80 to $85 offered more opportunities than threats.
“We’re actually in a very good position to certainly withstand a sustained period of low oil prices,” he said.