Summary: BP PLC (BP) can't seem to catch a break. The company announced on Wednesday declines in quarterly production for a fifth period in a row. Both the August shutdown of the Prudhoe Bay oilfield and the delays at the Thunder Horse platform in the Gulf of Mexico have contributed to these declines. The Gulf of Mexico site was damaged by Hurricane Dennis in 2005 and production is not expected to restart there until mid-2008. BP's problems are compounded by the current investigation into alleged oil and propane market manipulation, in addition to lawsuits from a 2005 refinery explosion in Texas. The company's refining global indicator margin, which reflects the average profitability of all of its refineries, fell to $8.40 a barrel in the third quarter, down from $12.35 during the same period last year. This was also lower than 2Q's $12.59.
Related links: Full article • BP, ConocoPhillips and ExxonMobil: Oil Field Shutdown Should Cause Only Short Term Losses • Reuters: BP seen down around 2 pct after trading statement
Potentially impacted stocks and ETFs: Oil Service HOLDRs ETF (OIH), United States Oil Fund ETF (USO), ConocoPhillips (COP), Chevron Corp. (CVX), Royal Dutch Shell (RDS.A).
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