BAC/MER Has Ordered Traders Not To Enter Into Trades With BP

15 Jun 2010 17:18
AFTER THE BELL-BP falls after Merrill trade report


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NEW YORK, June 15 (Reuters) - U.S.-listed shares of BP Plc <BP.L><BP.N> fell 1.2 percent to $31.02 in extended trade on Tuesday after a Reuters report that Bank of America Merrill Lynch <BAC.N> has ordered traders not to enter into oil trades with the company. [ID:nNYL002041]

(Reporting by Chuck Mikolajczak)

BP: B of A Stops Long-Dated Oil Trades; Leak as High as 60K Barrels Per Day

By Tiernan Ray

Shares of BP (BP) fell 45 cents, or 1.4%, 85 cents, or 2.7%, in late trading, to $31.40 $30.55, after Reuters reported that Bank of America (BAC) has told its traders not to enter into oil trades with BP extending beyond June of 2011, citing anonymous people familiar with the “market directive,” which supposedly came from a “high-level executive.”

The new restriction is said to include “any trades in physical commodities, derivatives and swaps for crude oil and products.”

Reuters reports no reason was given for the directive, except a generally more cautious stance by B of A with respect to BP. Neither BP nor B of A would comment. BP’s oil trades in general have not been curtailed since the April 20 Gulf of Mexico spill, and “the directive did not reference any reduction in overall credit volume the bank would extend to BP,” the article notes.

Meantime, “federal and independent scientists” this afternoon announced they’d found the rate of flow from the Gulf leak is yet again higher than previously estimated, now in a range of 35,000 to 60,000 barrels per day, higher than a prior range offered of 20,000 to 40,000, Dow Jones’s John Kell writes.

http://blogs.barrons.com/stockstowa...high-as-60k-barrels-per-day/?mod=yahoobarrons

 

the revised estimate of 60k barrels a day leak won't help either lol

Government Doubles BP Leak Estimate To 60,000 Barrels Per Day

Read more: http://www.businessinsider.com/gove...to-60000-barrels-per-day-2010-6#ixzz0qxhVY9yv


BP -2.5% Ahs

 

It seems the higher the Obama administration wants the "damage fund" to be, the higher the leakage estimates. Seems, correlation does not only exist in financial markets...

 

This is how a death spiral gets started..................

 

BP is phucked. Hahaha!!!!!! Short this motherfucker to 0

 

Go Obama Go!

 

Thanks to the OP for finding this info. - just forwarded it to Drudge Report. Whole world should know about this crack in the dike.

Would you like to be the last firm to accept BP as a counterparty? No. This might turn into a vicious cycle with other firms dropping out.

 

Watch oil spike to 250 per barrel this summer. We're fucked. BP owns most of the oil in the world, including Iraq, Saudi Arabia, Alaska, Arctic, Brazil, Venezuela. We're fucked, with Obama running this anti-oil fiasco.

 

bp ,an oil co. is doing everything it can and it keeps getting worse,...Obama comes on tonite and says with stepped up efforts in the next 2 weeks,we will be capturing up to 90% of the escaping oil,...just a blatant lie..this is how stupid D.C. thinks we are,....anyone buying into this economic recovery deserves to get taken

 

I don't know if oil will make it to 250 this summer, but it is definitely going higher. We just broke out from consolidation after a deep pull-back, the seasonal tendency is up due to the summer driving season and the COT commercial index is more long that it has been in a year and a half. I went long USO yesterday.