Trump's Venezuela plan wipes billions off BP and Shell as oil price slips below $60 a barrel
More than £7billion was wiped off the value of Britain’s biggest energy companies after US President Donald Trump outlined plans to sell Venezuelan oil.Shares in Shell fell 3.3 per cent and BP was down 3.2 per cent as the oil price dropped – dips that reduced the value of the two FTSE 100 firms by £5.2billion and £2.1billion respectively.The sell-off came after Trump said America would receive, refine and sell up to 50m barrels of sanctioned oil from Venezuela.The oil – currently in Venezuela under a US blockade – could be worth as much as £2billion.The prospect of a flood of oil entering the market sent the price of Brent crude to a low of $59.88 before it clawed back some losses.Reports suggested the 50m barrels would be the first round of sales which are expected to continue indefinitely after the capture of president Nicolas Maduro. Shell shocked: Shares in Shell fell 3.3% and BP was down 3.2% as the oil price fell – reducing the value of the two FTSE 100firms by £5.2bn and £2.1bn respectivelyUS energy secretary Chris Wright said the US needed to control Venezuela’s oil to drive changes it wants to see in the country.He said: ‘If we control the flow of oil, the sales of that oil, and the flow of the cash that comes from those sales, we have large leverage. But without large leverage you don’t get change.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Trump's Venezuela plan wipes billions off BP and Shell as oil price slips below $60 a barrel
