Reuters was reporting a source from Bank of America Merrill Lynch as saying that their traders have been advised not to enter into any oil trades with BP that extend beyond 2011. Once this spreads around Wall Street this could leave BP without the ability to hedge their positions and it will become harder for them to operate. Counterparty risk is becomming an issue. The government is going at them, the capital markets are going at them, the shorts are going at them, and the market cap is off 48% since the spill started and that is over $100 Billion in market cap. Based on the new spill estimates I heard a new clean up estimate to be between 80-100 billion. True that it took 20 years of litigation for Exxon but I don't see the US government treating this like a Leons don't pay a cent event....I guess this is why companies like Suncor are up over 10% since last week....
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