Oil giant feels effects of Covid-19

Oil rig in sunset

BP has announced a $6.7bn quarterly loss after global demand for oil slumped during the height of the Covid-19 pandemic.

Oil prices fell dramatically as a result of the economic slowdown and turned negative for the first time in consumer history in April.

In the short-term, BP said it expected demand for oil could be up to nine million barrels per day lower compared to last year.

Shareholder dividends have been halved with forecasts for a challenging future ahead, while 10,000 jobs are to be cut – with around a fifth of the redundancies expected to be in the UK.

In response, BP said it wanted to move away from being a traditional oil company and reinvent itself as an integrated energy company by focusing on renewables and bioenergy as well as hydrogen and carbon capture and storage technology.