By Daniel Hunter

Oil prices could stay low for as long as three years, according to BP boss Bob Dudley.

Speaking to the BBC, Mr Dudley said the oil giant was preparing for oil prices, which have fallen by more than 50% since summer 2014, to stay low for a number of years. He also said that petrol could fall below £1 a litre.

But the BP boss warned that lower prices could lead to the oil giant cutting jobs and investment in the North Sea and other areas. He said that would lead to lower supply and would push prices back up.

"Companies like us, at BP, we're going to need to rebase the company based on no guarantees at all that the price will come back up," he said.

"We have go to plan on this [price] being down, and we don't know exactly what level, but certainly a year, I think probably two and maybe three years."

"If prices keep going down, I'm sure you will [see £1 per litre]," he added.

$200 a barrel

The chief executive of Italian oil group Eni warned that the next spike in oil prices could hit $200 a barrel.

Claudio Descalzi said the industry would cut capital spending by 10-13% as a result of falling prices.

But that would cause shortages in the longer term and sharp price rises in Opec does not decide to cut production now.

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