BP shares extend losses after US oil spill ruling

BP's former CFO has died. Picture: Reuters.

BP's former CFO has died. Picture: Reuters.

Published Sep 5, 2014

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London - Shares in BP extended losses on Friday, with the stock remaining impacted by a US judge's decision that the oil major was 'grossly negligent' and 'reckless' over a 2010 Gulf of Mexico oil spill.

BP's shares were down by 0.5 percent in early session trading, adding to a 5.9 percent slump on Thursday.

BP said it would appeal Thursday's ruling by US District Judge Carl Barbier in New Orleans, Louisiana.

However, some analysts said the court ruling would add an element of uncertainty over the company's financial prospects, due to the risk of more fines and legal costs.

“Judge Barbier's ruling that BP was grossly negligent with respect to the Deepwater Horizon accident and that its activities at the Macondo well amounted to wilful misconduct does come as a surprise and is close to the worst case scenario we could envisage for the stock,” Barclays analysts wrote in a research note. - Reuters

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