April 16 (Bloomberg) -- BP Plc, Europe’s second-largest oil company, doesn’t expect crude prices to trade much higher than levels seen in the first quarter.

Prices are unlikely to be “much firmer” because of the global slowdown, Chief Executive Officer Tony Hayward told an annual meeting of shareholders today.

Oil averaged $43.33 a barrel in New York in the first quarter, dropping as low as $32.70 a barrel as the recession sapped consumption. U.S. crude oil inventories remain at the highest in almost 19 years as demand in the world’s biggest energy consumer continues to wane.

The Organization of Petroleum Exporting Countries announced record production cuts at the end of last year in an attempt to support prices. The supply reductions have failed to take prices higher than $54.66 a barrel and the group will meet again in May to review quotas.

So far in the second quarter, oil prices in New York have averaged $50.37 a barrel, according to Bloomberg data. WTI crude futures traded at $50.10 a barrel on the New York Mercantile Exchange today at 2:09 p.m. in London.

Editors: Stephen Cunningham, Rob Verdonck.

To contact the reporter on this story: Fred Pals in Amsterdam at fpals@bloomberg.netAlexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net

Last Updated: April 16, 2009 09:40 EDT