Why BP Stock Fell 10% in July
Shares of integrated energy giant BP (NYSE: BP) fell roughly 10% in July, according to data from S&P Global Market Intelligence. That extended this year's pain, with the stock down roughly 40% through the first seven months of 2020. That's up from the worst of the year's downturn, but investors were increasingly worried about BP's future as July unfolded and the shares slid lower through the month.
The big story is that oil prices are low because of a supply-and-demand imbalance that was aggravated by COVID-19-related economic shutdowns. That's terrible news for companies like BP, where the top and bottom lines are driven by oil prices.
In fact, when the company reported its second-quarter earnings in early August, they were just as bad as feared. BP lost $6.7 billion, including a $6.5 billion one-time charge. It had warned of that charge in June so investors weren't exactly surprised, but it was still an unwelcome development and a lot of red ink.
Source Fool.com
