BP’s Bob Dudley: Oil Market Uncertainty Could Lead to a Real Crunch

Aflurry of intensifying risks could trigger an energy market "crunch" over the coming months, according to the chief executive of BP.

His comments come at a time when energy market participants expect US sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year, CNBC reported.

When asked whether production cuts from the so-called OPEC+ coalition were likely to help stabilize oil prices, Dudley replied: "Well, there are a lot of variables here and there are a lot of things that could lead to a real crunch."

Speaking at an energy forum in Cairo, Egypt, Dudley cited "tragic circumstances" in Venezuela, uncertainty in Libya, rising production levels from the Permian Basin and the impact of US sanctions on Iran.

"So, the OPEC+ countries agreed to reduce production in the first quarter, we do not even really have data from it. We will have to see what the data looks like but the markets feel tight to me."

"We plan BP on a sort of fairway, which I think is good for the world, between $50 a barrel and $65. That is good for producers and consumers," Dudley said.

source: Financial Tribune