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BP plans to axe 4,000 oil workers

As well as feeling the squeeze from plunging oil prices BP is paying out some US$20bn of fines relating to the Gulf of Mexico oil spill in 2010.
BP plans to axe 4,000 oil workers
Some 600 of those jobs will be lost over the next two years in the United Kingdom

BP (LON:BP.) is shedding over 4,000 posts worldwide as the decimation of the oil price appears to have no end in sight.

Some 600 of those jobs will be lost over the next two years in the United Kingdom, specifically from BP’s North Sea operations.

As well as feeling the squeeze from plunging oil prices BP is paying out some US$20bn of fines relating to the Gulf of Mexico oil spill in 2010.

Crude prices peaked in 2014 at around US$115  a barrel but now stand at around US$33 a barrel and some experts see it sinking as low as US$10 a barrel.

A cocktail of worries, including over China, (fully justified or not), the actions of OPEC and glut, or oversupply, fears have created the perfect storm to see black gold sink to 12 year lows in a hugely out-of-balance market.

Standard Chartered became the latest big bank to downgrade forecasts, saying it's heading for US$10 a barrel - the lowest level for nearly two decades.

It joins RBS, Morgan Stanley and Goldman, which have all recently made big downgrades.

In oil futures trading on Tuesday, Brent crude and West Texas Intermediate for February delivery are both up over 1% however but still below the US$32 mark.

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