Why do I feel like it's a setup ---
BP's (NYSE:BP) shares dropped 6% today, collapsing the company's stock price to its lowest levels in 14 years.
The oil-giant's stock price has dropped for nine consecutive weeks since the explosion of the Deepwater Horizon oil rig. On April 20th, the day of the blast, BP's shares closed at $60.48; today, they closed at $27.02, dropping $1.72 for the day and 14% for the week.
BP's shares have now lost US$104.73 billion in value since the beginning of its Gulf of Mexico oil disaster.
Escalating costs, legal liability, and the company's inability to cap the leaking oil pipe have all eroded investor confidence.
The company had US$15 billion in available assets when the oil rig went down; however, financial analyst Alastair Syme of Nomura Securities Co. said this number may not be enough. The company may need an investor to provide short-term relief; if this becomes a reality, it will dilute the value of BP's stock even more.
Read the full story at the Associated Press: BP shares hit 14-year-low; shares down over $104B