BP shares plunge to 14-year low

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BP shares plunge to 14-year low

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Shares in BP have fallen sharply amid concerns over the cost of the oil leak in the Gulf of Mexico. The company maintains it can cover its liabilities, saying it is “unaware of any justification” for the collapse in its shares.

Pressure is mounting on BP, with hearings beginning in Congress and with the government making it clear it wants the company to cover all the costs of the disaster.

The Governor of Louisiana, Bobby Jindal, said: “Every day they announce how much oil they’ve burned and skimmed. Every day they announce how much money they have spent on claims and that’s great. But you really can’t get a complete picture, unless you know how much oil is still out there in the water and how much oil is being leaked out.”

Cameras are being dropped into the sea to try to get a better look at the large oil plumes threatening the environment.

Amid reports BP is heading for a showdown with the White House over how much the company will have to fork out in liabilities, shares fell to a 14-year low in the US and were down 11 percent in early trading in London.

This as efforts to recover more leaking oil are stepped up.

US Coast Guard Admiral Thad Allen said: “We are in the process of moving a mobile drilling unit into place. It will probably be there 14th of June, which will add a 10,000 barrel capacity to what is coming out of the wellhead right now, in addition to the Discover Enterprise.”