Petrol prices have peaked: BP chief .
Sydney Morning Herald -- September 15, 2005 - 4:02PM
smh.com.au
Petrol prices have peaked and will start dropping soon, according to the head of BP Australia.
Crude oil is still trading at over $US65 a barrel, about 50 per cent higher than this time last year, and prices at the pump remain at record highs.
But BP Australia president Gerry Hueston said he thought "some common sense" would soon return to the market.
"In the very short term the street prices I think have probably topped out," Mr Hueston said.
"If nothing happens with the oil price I would see prices at the pump coming down well below the levels they are today.
"The dynamics of the market say it will stay up around $US60 a barrel for a while and then it's going to come down - which is appropriate because it is too expensive."
Mr Hueston said the crude oil price would probably settle at between $US30 and $US50 a barrel in the medium term.
"It's just a question of when that medium term arrives."
Mr Hueston said BP's sales volumes had dropped off since the oil price pushed over $US60 a barrel.
"Whether that's people just not filling their tanks for now, or because people are just not driving - I think there's less cars on the road, but I'm not sure," he said.
"I think people are very unhappy about it, and we fully understand that - my wife is very unhappy with the price of petrol."
While understanding consumers' frustration with prices, he said petrol companies were powerless to change things.
"We're completely hostage to international prices here - we import products at the margin, we buy up crude oil overseas to refine here," he said.
AAP |
