By Adrian Croft and Kristen Hays
Kabul/Houston - British Prime Minister David Cameron offered on Thursday to help deal with BP's Gulf of Mexico oil spill, saying he would take it up with US President Barack Obama, as the beleaguered company's shares rebounded from 14-year lows.
It was the first time that Cameron had spoken publicly about the crisis. Cameron, who took office in May and is under growing pressure domestically to stand up for the British energy company, is due to talk to Obama by telephone this weekend.
Obama has been sharply critical of BP and the two leaders' conversation will have to seek a delicate balance between domestic pressures and long-standing US-British ties.
Obama said after meeting with Republican and Democratic congressional leaders at the White House that he wanted to update US pollution laws to ensure that victims of the oil spill are fully compensated. Obama also met with relatives of the 11 workers killed in the explosion of an offshore oil rig on April 20 that triggered the disaster.
BP pleaded for patience from Americans frustrated about the spill, the worst in US history and now in its 52nd day. But the Obama administration kept up the heat, saying it would make sure BP paid all damages and cleanup costs.
The spill has soiled 190km of US Gulf coastline, including wildlife refuges in Louisiana and barrier islands in Mississippi and Alabama. It threatens multi-billion-dollar fishing and tourist industries.
In another sign the spill is spreading, heavier concentrations of oil began washing up on Florida seashores starting late on Wednesday. Until then, debris from the spill had been limited to relatively small tar balls.
BP was the second most active stock on the New York Stock Exchange as shares rebounded by more than 11 percent by 3.15pm. It took a 16-percent dive to a 14-year-low on Wednesday amid concerns over BP's ability to meet mounting costs.
"The stock is obviously volatile as investors try to wager on the outcome of the Gulf oil spill," said Jud Pyle, chief investment strategist at Options News Network, a division of option market maker PEAK6 Investments in Chicago.
Analysts said the company's improved performance was partly due to speculation that PetroChina, Asia's top oil and gas firm, was considering making a bid for BP.
Shares in Anadarko Petroleum Corp and Transocean Ltd, two companies involved in the well, also jumped on Thursday. In London trading, BP stocks sank to their lowest level since 1997 before bouncing off their lows and closing 6.7 percent down.
Illustrating the extent of investor concerns about BP, the cost of insuring its AA-rated debt traded for a time at levels normally associated with "junk" status.
After Wednesday's battering in New York, BP had lost more than half its market value since the crisis began.
"BP notes the fall in its share price in US trading last night. The company is not aware of any reason which justifies this share price movement," BP said in a statement on Thursday. - Reuters