British energy firm BP has said its profit in the second quarter of the year was down 45 percent.
Factors behind the fall were low prices from a glut of oil, higher charges – including a further $5.2 billion from the 2010 Gulf of Mexico oil spill – and lower contributions from BP’s stake in Russian oil producer Rosneft.
As a result BP announced more cuts to its investment budget for this year to less than $17 billion.
BP predicted it would be able to balance cash flow with shareholder payouts and capital spending if crude sells for $50 to $55 dollars a barrel next year. It is currently under $45.
All oil producers are struggling with low prices. They did rebound in recent weeks following wild fires in Canada and militant attacks in Nigeria but are drifting down again with production increasing.
Rivals Shell, Statoil, Total and Eni also report second-quarter numbers this week.