BP Faces Uncertainty in FTSE 100 as US Senators' Proposals Loom

George Christian Boadi October 21, 2023 0

BP has found itself back at the bottom of the FTSE 100 amid fears of a significant financial penalty and dividend suspension. Proposals from US senators are looming, which could force the oil company to set aside $20 billion in an escrow account to cover the costs related to the Gulf of Mexico spill. 

President Obama is scheduled to outline his plan in an upcoming speech, and market concerns are running high regarding the potential severity of the measures against the company.

BP has already acknowledged that the cost of the cleanup has reached £1.1 billion, with over 1,000 claims submitted since the MC252 oil well explosion in the Gulf of Mexico back in April. The uncertainty surrounding the impending announcement has put significant pressure on BP's stock.

In contrast, mining companies have benefited from higher metals prices. Key players in the sector, including Kazakhmys, Vedanta, and BHP Billiton, have all shown positive performance. However, silver and gold miner Fresnillo is leading the way due to rumors that the company is attracting takeover interest.

FTSE 100 - Top Gainers:

1. Fresnillo (FRES): Fresnillo is leading the charge with a 5.15% increase, driven by takeover speculation.

2. Kazakhmys (KAZ): Up by 3.53%, benefiting from higher metals prices.

3. British Airways (BAY): British Airways has gained 3.16% as the airline sector shows signs of recovery.

4. Whitbread (WTB): Whitbread has risen by 3.14%, reflecting optimism in the hospitality industry.

5. Invensys (ISYS): Up by 2.89%, riding the wave of positive sentiment in the engineering and industrial sector.

6. Barclays (BARC): Barclays has experienced a 2.85% increase, in line with the broader banking sector's performance.

7. BHP Billiton (BLT): Up 2.83%, boosted by rising metals prices.

8. Eurasian Natural Resources (ENRC): Showing a 2.82% increase, in line with the mining sector's positive momentum.

FTSE 100 - Top Losers:

1. BP (BP): The embattled oil giant is down by 5.81%, amid mounting concerns over potential penalties and dividend suspension.

2. Home Retail Group (HOME): Home Retail Group is down 1.28%, facing challenges in the retail sector.

3. Morrison (Wm) Supermarkets (MRW): Experiencing a 0.84% drop, reflecting competitive pressures in the supermarket industry.

4. Sage Group (SGE): Down by 0.62%, possibly influenced by dynamics in the software sector.

5. Cable & Wireless Worldwide (CW): A 0.62% decrease, in line with the broader telecommunications industry.

6. Man Group (EMG): Experiencing a 0.61% drop, possibly related to developments in the asset management sector.

7. Compass Group (CPG): Down 0.53%, amid changing conditions in the catering and support services industry.

8. Royal Dutch Shell 'A' (RDSA): Showing a 0.45% decrease, possibly influenced by factors within the energy sector.

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