UK oil company BP is set to pay the price for plummeting prices. It has announced it is to shed 4,000 jobs globally, 600 of which will be lost from its North Sea operations.
The job losses come as the company’s profits continue to suffer as a result of a 70 percent collapse in prices.
Benchmark Brent crude dropped to 30.60 dollars per barrel. Analysts believe the price could fall more.
“I think we can look to 20 dollars at the moment and of course there are predications of 20 dollars. And I think that is the area when you look at Saudi Arabia and the Middle Eastern producers, that is the area that it tends to get a little bit more difficult for them to make money off the back of the stockpiles that they have in place, not just producing it out of the ground,” explained James Hughes Chief Market Analyst at GKFX.
The volatile trading in oil has prompted calls for an emergency meeting of the Organisation of the Petroleum Exporting Countries. But UAE Energy Minister Suhail bin Mohammed al-Mazroui said the current strategy was working and time was needed to allow it to happen – perhaps one to one and half years.