BP to reduce costs

BP seeks to sharply reduce its spending and costs to be able to generate profit at oil prices below $35 a barrel by next year compared with $56 a barrel last year, CEO Bernard Looney said, Report informs, citing Reuters.

The company announced a 25% cut in its 2020 spending to $12 billion following the recent collapse in oil prices and could reduce its budget by a further $1-2 billion, Looney told Reuters.

The company expects global oil demand to drop by around 15 million barrels per day in the second quarter due to coronavirus-related movement restrictions, roughly 15% of 2019 consumption, Looney said.

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