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BP makes $1bn loss as oil prices slump

Company faces losses, share-price fall and more fines over Deeepwater Horizon spill with underlying profits likely to take a hit

BP has crashed to a $1bn loss in the final quarter of the year as low oil prices and more writedowns hammered its results.

Its chief executive, Bob Dudley, warned the industry had now entered a “challenging new phase” of reduced crude prices clearly signalling he expected no quick bounce back for the value of Brent.

The $969m (£645m) replacement cost loss in the final three months of the year compared with a profit of $1.5bn for the same period last year. The underlying replacement cost loss – a “clean” figure preferred by analysts – came in at $2.2bn, compared to $2.8bn last time.

Shares in BP fell over 2% in early trading despite the company raising the dividend for investors to 10c.

The troubled oil company, which has in the past been a subject of takeover speculation, said it would be slashing its spending for 2015 to $20bn, down from a target of over $24bn in 2014.

BP also revealed it had so far spent $43.5bn on fines and other liabilities resulting from the Gulf of Mexico blowout. The company admits it could still face charges of $13.7bn under a Clean Water Act but is hopeful it can avoid this.

“We have now entered a new and challenging phase of low oil prices through the near and medium term,” said Bob Dudley, BP group chief executive.

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The Cartel: How BP Got Insider Tips Through a Secret Chat Room – Bloomberg

The Cartel: How BP Got Insider Tips Through a Secret Chat Room – Bloomberg.

Halfway down a muddy, secluded road on marshland in suburban Essex sits Wharf Pool, a lake stocked with some of the biggest freshwater fish you will ever see.

A white sign with red lettering reads: “Private Syndicate: Strictly Members Only.” A metal gate, a barbed-wire fence and two CCTV cameras bar the way. Anglers hoping to spend time on the lake’s carefully tended banks must join a waiting list. Those who make it to the top pay a membership fee that buys them the chance to catch a carp that weighs more than a Jack Russell. There are hundreds of them swimming beneath the surface. It’s close to shooting fish in a barrel.

An hour away by train, in London’s financial district, the lake’s owners ply their trade. Wharf Pool was purchased for about 250,000 pounds ($388,000) in 2012 by Richard Usher, the former JPMorgan Chase & Co. (JPM) trader at the center of a global investigation into corruption in the foreign-exchange market, and Andrew White, a currency trader at oil company BP Plc. (BP/)

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