BAKU, Azerbaijan, Feb.8
By Leman Zeynalova – Trend:
In gas markets, with ongoing geopolitical uncertainty, and low storage levels, bp sees the potential for continued price volatility, Trend reports with reference to the company.
The company predicts that oil supply and demand will move back into balance through 2022; however with lower levels of spare capacity price volatility is likely. OPEC+ decision making on production levels continues to be a key factor in oil prices and market rebalancing, according to bp.
“In the first quarter of 2022, we expect industry refining margins to remain broadly flat compared to the fourth quarter of 2021,” reads the latest report published by the company.
Looking ahead, bp expects first-quarter 2022 reported upstream production to be lower than fourth-quarter 2021 reflecting base decline and higher maintenance.
“Within this, we expect production from both oil production & operations and gas & low carbon to be lower. In our customer businesses we expect product demand to remain impacted by ongoing uncertainty around COVID-19 restrictions and continued additive supply shortages in Castrol. In products we expect energy costs to remain under pressure,” said bp.
bp predicts that its future financial performance, including cash flows and net debt, will be impacted by the extent and duration of the current market conditions and the effectiveness of the actions that it and others take, including its financial interventions.
“It is difficult to predict when all current supply and demand imbalances will be resolved and what the ultimate impact of COVID-19 will be. bp continues to take steps to protect and support its staff through the pandemic. Precautions in operations and offices together with enhanced support and guidance to staff continue with a focus on safety, health and hygiene, homeworking and mental health. Decisions on working practices and return to office based working are being taken with caution and in compliance with local and national guidelines and regulations,” the company said.
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