BP shares plunge after oil slick

BP shares have plunged 7% after the oil giant said a well in the Gulf of Mexico was leaking oil at a much faster rate than previously thought.

Five times as much oil is now thought to be spilling from the well under the Deepwater Horizon rig, operated by BP, which exploded last week.

An estimated 5,000 barrels of oil a day are now pouring into the Gulf.

Earlier this week, BP said that profits in the first three months of the year had doubled from a year earlier.

Replacement cost profit for January to March was $5.6bn (£3.6bn).

BP said the clean-up operation was costing it millions of dollars a day, but this figure could rise dramatically if the oil hits land.

The oil, which has formed a slick measuring 45 miles by 105 miles, is currently about 50 miles (80km) off Louisiana's coast.

Weather forecasters have warned that changing winds could drive the oil slick ashore by Friday night.

Posted at 08:39PM Apr 29, 2010 by Kelly Board in The Economy  |  Comments[0]