BP’s embattled CEO Tony Hayward will resign from his position in the month of August. Sources close to BP said that Tony Hayward who is 53 years old will make the announcement in the month of August. The reason given to Financiere about the resignation is that the company is trying to regain its reputation which was badly effected after the Gulf of Mexico Oil Spill.

When we approached the spokesman of BP Scott Dean, he clearly denied the report adding that the report is “a myth” adding that “Tony Hayward is in charge of BP”.

The oil spill has now stopped after a temporary capping on oil pipe but a permanent solution is yet to be seen. The Gulf of Mexico is a very big ocean and the efforts to clean the oil spill are not enough. It is considered the America’s worst environmental crisis, where more than 100 million gallons have gushed into the Gulf.

[Source: MSNBC]

Oil prices rose to nearly $73 a barrel in Asia and similar effects were seen in stock market and euro exchange rate. The euro advanced to $1.2594 from $1.2537. The euro will continue rising till the end of August and then it will be the most suitable time for investors to sell their euros and earn more than 20% profits.

Generally, the investors around the world follows the equities trend for their investments. For them, the euro rise and a dollar fall is quite a good news because now the crude oil will be cheaper for European exchange carriers.

It is very much expected that from now on the oil prices and stock markets will rise allowing investors to relax and earn profit. The energy sector and food sector of stock markets would drastically rise because of the demand from the emerging economies of the world. The crude oil has also seen rise in sales and since the demand is rising, the prices are expected to move up.

The disastrous Gulf of Mexico oil spill has cost BP $3 Billion for the cleaning work, capping the leakage and paying damages to businesses and governments. Previously BP had to pay $20 billion funds for Gulf damages. The relief wells are being dug in the Gulf but may not work properly due to bad weather forecast.

Smoke was also seen rising from the oil spill site as natural gas was burnt off. After the recent damages bill, BP is now more vulnerable to a takeover by either it’s competitors or by the government. Libya have shown interest in buying BP Shares and it is quite possible for Libya to be a major Stakeholder of BP. Nearly 45,000 employees are working on the oil spill site for clean up purposes.

Since BP had to pay billions of U.S. Dollars for the worst oil spill in the history, BP is now selling fields in different countries to meet the costs. BP shares are expected to fall down very soon as predicted by analysts. The FTSE was seen falling down and the shares of BP were climbing but this trend will short-live.

BP shares are seen rising whereas the FTSE 100 was recorded at 4,790 points and still declining. The analysts believe that BP have supported their shares market by pulling investments from big players. Other sources confirm that the shares market is pseudo and is likely to collapse very soon. Some investors believe that the shares are kept high so that their current investors doesn’t withdraw and those who are selling BP shares now are getting good price for it. The buyers indeed are BP’s own to maintain the share price.

After the oil spill incident, the BP Plc shares have fallen from$188 billion to $139 billion  which is approximately 26.5%.  A loss of $15.8/share. The BP competitors have also witnessed a loss of 15% overall in shares. “The estimated cost of the company will soon be about $25.8 billion” predicted by stock market guru Shermann. The British petroleum stocks predictions is that it will fluctuate for another month and investors would soon realize that the market will shrink. The best option now is to sell BP shares no matter how much attractive they look because the odds are, the competitors are going down due to oil spill and the company responsible for the oil spill is paying the penalty charges. The BP news will soon make a headline of market crash and investors are warned about the shares price disaster.

View the full FTSE chart at Wikinvest

View the full BP chart at Wikinvest

Oil is a commodity which makes the world go round. The odds are recorded and BP is expected to have a new CEO by the end of this year. Since the recent oil news revolves around BP, the prices of gasoline is fluctuating and oil market is considered to be unexpected. Oil rises above $73 as traders analyze US job market. The energy sector of stocks market have also declined recently and surprisingly BP shares were seen flourishing confusing the investors whether to sell bp shares or not. The Fed’s decision to keep the interest rates near zero allowed the oil market to dip from $76 to $73. The reason for keeping interest rates lower is that it is supportive for oil prices as cheaper borrowing cost allows more consumption and trading. The prices have bounced again as more people have filed new applications for unemployment insurance. Analysts believe that the oil prices will slightly fall in the 1st half of July and will increase rapidly in the second half as investors would be running for energy sector shares. The falling stock markets have pushed investors to buy shares of energy sector which is always considered more profitable than other shares.

Recently the energy market has witnessed rise in oil prices. The international oil price has reached to almost $3 and is expected to rise in the coming week. Similarly diesel prices have also increased to 5 cents leading it to $3.08. Analysts have confirmed that the future of the energy sector is at stake as energy consumption has increased and BP crises have hit hard the world markets’ energy sector and the losses faced by the company would worsen the market.

On the other hand, the consumers have boycotted the BP stations and protested against the company for its recklessness. The measures taken to clean sweep the oil spill are not enough. Shell, on the other hand said that the deep water drill should be continued to meet the market demands otherwise the oil prices may rise to new extents. The critics say that the price of oil has doubled since Obama took control of the administration which clearly shows that they cannot handle the situation properly.