BP Shares take a tumble

BP Shares on the way down

Yesterday the BP share price fell by 5% and at the time of publishing the price fell by another 0.5%.

The price is being held to ransom on the outcome of the possibility that the latest attempt to stop the Gulf of Mexico oil leak may have problems. The issue appears to be that the new cap may be failing to stop some oil leakage.

The US government have already contacted BP demanding answers to any potential problems that BP may be aware of with regards to the cap and the well head. The concerns are to do with reports that a seepage may have been discovered by the BP experts. This seepage, however, may just be the remains of the oil left over from the explosion of the well that happened months ago.

At the moment the BP engineers are holding tight even in spite of news that the US government has ordered them to create a new strategy that will enable them to open the well if there is a leak.

BP has already spent £2.6 billion on trying to sort out the disaster. Everything at this moment still hinges on the success of the relief wells that are due to be completed in August, then, and only then will the well be finally fixed. Investors are getting nervous and rumours in the markets are not making anything better. Everything relies on the relief wells, if they do not work then BP will be heading for a meltdown.

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Posted by Jennifer on Jul 20 2010. Filed under Business, Featured News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry