Numerous events have occurred this weekend and early this morning involving BP.
1) BP are saying that a new cap could stop the flow of oil as soon as the end of this week- BP will know if the cap will work within the next 48 hours.
2) BP is looking to sell off assets to raise cash
3) Exxon Mobil approached the White House this weekend and asked if there would be a problem if they made a bid to buy BP.
These three events are helping to lift the stock up 7.20% to 36.50/share at 2:00 pm. Obviously, the most important of these events is the first. If this new cap does not work, the stock price will easily lose all of today's gains. As for the second event, this is a sign that BP is realizing that they may have a liquidity problem. They realize that they do not have enough cash to cover the clean up, lawsuits, and fines that they will be hit with over the next ten years. As for Exxon buying BP, I do not know if this will happen; but, it would make sense. Exxon will know how to handle the situation having dealt with the Valdez oil spill.
For the sake of the Gulf Coast region, let's hope that new cap works.
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