Brent oil price trading near $74 as BP shares take a hit

Brent oil prices are trading near the $74 a barrel mark on Thursday as yesterday’s comments from US president Obama on oil company BP hit US shares and may well hit BP’s UK share price today.

Brent crude oil futures for July delivery were at $73.95 a barrel midday Singapore time on the ICE Futures Exchange.

Shares in BP have plummeted another 15% in US trading, amid fears President Obama will impose massive punitive penalties on the company, as BP’s share price has almost halved since the Deepwater Horizon oil spill began on 20th April 2010.

BP’s UK share price had already fallen 4.2% in London trading on Wednesday, over concerns about a possible dividend cut.

The US government has also demanded compensation for thousands of oil industry workers laid off as a result of a freeze on drilling in the Gulf of Mexico. The demand also added to BP’s shares plummeting on Wall Street amid worries over long term survival prospects of the company.

There are warnings that brent oil prices could rise substantially because of stricter regulations brought in to prevent another oil spill like that in the Gulf of Mexico. Contracts to buy oil are already rising in price, with a 10% increase in cost for those which end in 2011 compared to those ending next month.