Despite recent volatility in the price of oil, the CEO of BP believes the market is currently balanced and production is meeting demand on a daily basis.
"I think everyone uses the word balanced and they forget that it means different things to different people. To me, it means on a daily basis production and demand is equal. So on a daily basis, the market is balanced, it's just the inventory levels in the world that are so high," Bob Dudley, chief executive officer of BP told CNBC on Wednesday.
Oil prices were higher on Wednesday after a drop in U.S. fuel inventories and a cut in the U.S. government's forecast for output in 2018. The commodity moved lower on Tuesday after reports that Saudi Arabia had produced above its output gap. In June, oil reached a 7-month low on a bearish U.S. inventory report.