By Sarah Kent
LAUSANNE, Switzerland--Oil prices could remain under pressure
through 2016 as significant stock builds now take time to be
absorbed into the market, and even after supply and demand becomes
more balanced, BP PLC's chief economist said Tuesday.
Speaking at the FT commodities global summit, Spencer Dale said
he expected the oil market to return to balance as soon as the end
of this year, as lower prices damp supply and increase demand. But
this won't necessarily lead to a speedy price recovery.
"That's not the problem solved, it just marks the point at which
the market stops getting worse," Mr. Dale said.
Large volumes of oil are being placed in storage amid a global
supply glut. The build-up of a stock overhang of several hundred
million barrels is likely to maintain pressure on the market for
months after supply and demand returns to balance, Mr. Dale
said.
Write to Sarah Kent at Sarah.Kent@wsj.com