BP shares fall further as oil continues to leak

LONDON (BestGrowthStock) – Shares in London-based oil major BP Plc (BP.L: ) continued to fall on Tuesday, on growing fears about a massive oil slick heading from one of its wells in the Gulf of Mexico toward the U.S. coast.

BP shares traded down 4.7 percent at 548.7 pence at 0738 GMT, lagging a 1.5 percent fall in the STOXX Europe 600 oOil and Gas index (.SXEP: ).

The stock has fallen around 17 percent since the company announced two weeks ago a fire on the Deepwater Horizon drilling rig, which subsequently sank, unleashing a massive oil flow into the sea.

Almost $32 billion has been wiped off the company’s value since then, according to ThomsonReuters data, even though most analysts expect the final clean up and damages bill to be much lower, and to be shared by BP’s partners in the field, U.S. explorer Anadarko Petroleum (APC.N: ) and Japan’s Mitsui.

“We believe that the share price fall seen over the last week has more than reflected the potential financial damages to the company,” Peter Hitchens at Panmure Gordon said in a research note.

However, another analyst said the falls, and whether they would be reversed were a matter of sentiment which was unlikely to improve until there was some progress in stemming the leak.

BP shares fell in Frankfurt and its American Deposit Receipts also fell on Monday, when London markets were closed for a public holiday.

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(Reporting by Tom Bergin; Additional reporting by Blaise Robinson; Editing by Dan Lalor)

BP shares fall further as oil continues to leak