BP Earnings Slump
BP’s second quarter profit plunged to $720 million from $1.3 billion, badly missing analyst estimates. Revenue fell 25% from last year to $47.276 billion. The company cited weak refining margins amid lower oil prices for the lackluster results. The average selling price for a barrel of oil was $44.99 in Q2 this year, versus $56.69 in 2015.
BP shares fell $0.67 (-1.92%) in premarket trading to $34.23 per share. The stock has risen about 11.6% year-to-date.
Oil’s Recent Skid Continues
Oil prices resumed their nearly six-week slide Tuesday morning, with crude oil as measured by WTI off 1% to $42.72 per barrel.
The United States Oil Fund LP ETF (NYSE:USO) fell $0.08 (-0.79%) to $10.05 per share in premarket trading Tuesday. The USO, which is the largest oil ETF in the world, is now in danger of breaking below the $10 level. The last time USO traded below $10 per share was back in early April.