West Texas Intermediated (WTI) crude oil declined by 6.33 per cent at $31.62 a barrel and Brent fell by 0.14 per cent to $34.69 a barrel as hopes for a deal on production did not scale through.
Russia had last week sent mixed signals about possible cooperation with Organisation of Petroleum Corporation (OPEC) to support prices. It first suggested it should start talking to the cartel before saying there was no decision to do so.
As crude oil prices continued to fluctuate, oil giants are counting losses in their respective financial results.
Specifically, British Petroleum (BP), yesterday reported yearly loss of $6.5 billion for 2015.
It noted that despite strong operational performance and growing cost reductions, the lower underlying result was predominantly driven by the impact of steeply lower oil and gas prices on BP’s upstream segment, which reported a pre-tax loss for the quarter.
BP said it would cut 3,000 jobs in its downstream unit by the end of 2017 on top of 4,000 cuts already announced in oil and gas production as part of a $2.5 billion restructuring programme announced last year.
The company’s Chief Executive, Bob Dudley stated: “We are continuing to move rapidly to adapt and rebalance BP for the changing environment. We’re making good progress in managing and lowering our costs and capital spending, while maintaining safe and reliable operations and continuing disciplined investment into the future of our portfolio.
“Our plans set out a clear course for BP for the medium term and will allow us to deliver growth in the longer term. All of this underpins our commitment to sustaining our dividend and then growing free cash flow and shareholder distributions over the long term.”
Also, Exxon Mobil on Tuesday, posted a 58 per cent drop in quarterly profit as the languishing oil price continues to eat into the performance of the company.
Chairman and Chief Executive of the company, Rex Tillerson, stated: “While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management. The scale and diversity of our cash flows, along with our financial strength, provide us with the confidence to invest through the cycle to create long-term shareholder value.”
