BP eyes more spending cuts

London – BP said on Tuesday it could cut capital spending further after reporting an 80 percent drop in profits in the first quarter of the year, when oil prices touched a near 13-year low.

Chief Executive Officer Bob Dudley nevertheless said he expected crude prices to recover towards the end of the year as producers halt work on fields and fuel demand remains robust.

“Market fundamentals continue to suggest that the combination of robust demand and weak supply growth will move global oil markets closer into balance by the end of the year,” Dudley said in the results statement.

Faced with the worst downturn in the oil sector in at least three decades, BP reduced its capital spending three times in 2015 to $19 billion, slashed nearly 10 percent of its around 80 000 workforce and sharply lowered costs.

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