The world is facing a long-term oil glut as producers scramble to exploit reserves before fossil fuel demand goes into decline, according to a BP assessment that suggests that oil companies should brace for prolonged pressure from low prices. The UK oil and gas group said there was twice as much technically recoverable oil available as the world is expected to need between now and 2050, making it likely that some oil reserves will never be extracted. The surplus should spur increasing competition between companies and producer nations to ensure their assets were not left “stranded” as demand gradually shifts from oil to cleaner forms of energy. The result is likely to be “quite significant pressures to dampen long-run prices”, according to Spencer Dale, BP’s chief economist. His comments, in a presentation of BP’s annual energy outlook, provide a counter point to the optimism that has returned to the oil market since the Opec production cartel struck a deal last month with some non-Opec nations to curb output. The supply cut, the first by Opec and non-Opec nations for 16 years, has helped stabilise crude prices above $50 per barrel after a two-year downturn. Mr Dale declined to provide detailed predictions on pricing.