BP Stops Buying Back Shares

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BP Stops Buying Back Shares

BP, a United Kingdom oil company, stopped buying back its own shares. Oil prices fell below $60 per barrel.

This is the lowest price in nearly five years. When oil prices fall, BP makes less profit.

BP made profits as expected in the last quarter. The company is cutting costs to save money. BP shares fell 5% after the announcement.

Klear Note — Share buybacks let companies return money to shareholders. Lower oil prices mean BP earns less profit. Pausing buybacks shows the company is preparing for tougher times ahead.

Key Terms 2

share buyback: When a company buys back its own stock to reduce shares in the market.
crude oil: Raw oil from the ground before it is refined into fuel.

Verified Sources 2

BBC

CNBC