BP PLC Chief Executive Bob Dudley said on Tuesday the oil major has adjusted to persistently lower oil prices, preparing to operate in an environment with prices as low as $50 a barrel. Speaking at the "Oil & Money" conference in London, the oil executive said his company last year needed oil prices around $60 a barrel to balance income and costs, but that the number now is south of $55 a barrel. "But we can operate in the $50 dollar range if we have to going forward and still invest in growth," he said. His comments come as oil prices have been bouncing around $50 in recent weeks, with investors welcoming a preliminary deal by the Organization of the Petroleum Exporting Countries to cut output in a bid to stem the glut in the global oil market. "I don't think demand will fall off a cliff. The issue is more of oversupply. Our industry has been impacted by our own success, particularly by the shale revolution. But the long term demand will keep growing," Dudley said at the conference.
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