Oil Prices Plunge another 1% after BP Earnings Miss Badly

crudeoilIn a true sign of the times for the traditional energy industry, oil prices sank Tuesday morning mere hours after one of the world’s largest oil companies, BP plc (NYSE:BP), posted a 45% drop in quarterly earnings.

BP Earnings Slump

BP’s second quarter profit plunged to $720 million from $1.3 billion, badly missing analyst estimates. Revenue fell 25% from last year to $47.276 billion. The company cited weak refining margins amid lower oil prices for the lackluster results. The average selling price for a barrel of oil was $44.99 in Q2 this year, versus $56.69 in 2015.

BP shares fell $0.67 (-1.92%) in premarket trading to $34.23 per share. The stock has risen about 11.6% year-to-date.

Oil’s Recent Skid Continues

Oil prices resumed their nearly six-week slide Tuesday morning, with crude oil as measured by WTI off 1% to $42.72 per barrel.

The United States Oil Fund LP ETF (NYSE:USO) fell $0.08 (-0.79%) to $10.05 per share in premarket trading Tuesday. The USO, which is the largest oil ETF in the world, is now in danger of breaking below the $10 level. The last time USO traded below $10 per share was back in early April.

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