Sanctions imposed by Iran should result in "extreme volatility" in oil prices, says CEO of BP

Dudley has not seen falling demand because of the high prices attributable to global GDP growth (estimated at 3.7% in 2018 and 2019 by the International Monetary Fund), which remains robust. "The demand continues to grow, but the problem is not over yet, but we still do not see this destruction," he said.

"You look at the growth of GDP (gross domestic product) in the world and it's a very good indicator of the growth of the demand for oil and it's been decades and decades that … If you start to see half a percent Weakening GDP growth Globally, demand could fall by 200,000 barrels a day, as our economists see it, and it's not that bad, "he said.

Earlier Wednesday, Dudley told the London Oil and Silver Conference that "we are far enough away from the price of oil," reported Reuters, and that the company was considering a 60-year oil price cycle. and $ 65 a barrel.

He echoed these comments to CNBC, saying: "We have gone through this period of really low prices and they are rising again and we can not plan on these high prices now," he said, adding that Markets were a "what could be considered a good price for oil.

"So we will continue to plan our business at a much lower price."

President Donald Trump has called on OPEC to increase production to mitigate any Iranian deficit and its impact on prices. Saudi Arabia, the de facto leader of OPEC, said it had spare capacity to fill any deficit created by Iran, but Iran has challenged that. Dudley said that OPEC "is a better expert on technical points" but felt that Saudi Arabia had enough oil.

"I think Saudi Arabia has the capacity that it could bring to the market. But on the other hand, you have very unpredictable circumstances in Venezuela and of course, the sanctions of the country." Iran, but Dan Yergin (energy expert at IHS Markit) had a big quote saying markets seem to be in equilibrium, but emotionally they are not stable at the moment. "