Coronavirus pandemic could cost British Petroleum up to $17.5 billion, which is a value that the company predicts its assets value to drop. BP has lowered its long-term price assumptions for Brent oil till 2050 from previous $70 to $55 per barrel. An expected average price dropped in 30%. BP has reset the price outlook to lowest value of all relevant oil companies.
BP reported that one of the coronavirus pandemic impact will be a transition to low-carbon economies. “That is one of the reasons why we updated our oil price outlook. We believe that the world is approaching fulfilling of the Paris agreement,” BP Chief Executive Bernard Looney said. Last week, the company announced reduction on staff in 15% due to SARS-CoV-2 pandemic. Shares immediately grew in more than 4%.