BP says high prices not hurting oil demand

BP sees little evidence that high oil prices are curbing consumption, the company's Chief Executive John Browne says.

Asked if he thought that high oil prices were hitting demand, Mr Browne yesterday said: "Not particularly".

"If anything, demand appears stronger than we expected in the first few days of this year," Mr Browne told reporters at the launch of a BP report on sustainability.

Crude oil prices are more than 25 per cent above levels at the start of the year, driven by strong global demand and concerns about a shortage in refining capacity.

US crude prices fell for the sixth straight session yesterday, easing below $53 a barrel, as talk of another boost to Opec production added to pressure felt from high US crude oil supplies.

Mr Browne reiterated that oil prices were unlikely to drop back below $30 a barrel.

"The balance of supply and demand and te balance of Opec's micro-management means prices have a support level of $30 in the medium term," he said.