BP shares tumble on $25bn settlement threat

Shares in UK oil major BP were off more than 3% today as investors fretted over a warning from a well known analyst that the settlement for 2010's Gulf of Mexico disaster could be well above estimates.

Martijn Rats, head of European oil research at Morgan Stanley, predicted  BP and the US Department of Justice (DoJ) will agree a settlement of $20bn to $25bn for all outstanding civil penalties and damages, and any criminal charges relating to the spill. The figure is well above previous estimates, causing shares in BP to fall 3.1% or 14.9p, to 467.55p, by midday. The company - used widely by UK investors seeking income - faces a civil trial next month over the impact of the spill if a settlement is not reached. Rats said there is a 70% to 80% chance BP and the US authorities will ...