BP Closes Georgian Oil Lines

Source: http://www.zacks.com/stock/news/14171/BP+Closes+Georgian+Oil+Lines
Posted on Tuesday, August 12th, 2008 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

Addressing concerns about the Russian bombing and invasion of former Soviet republic Georgia, oil giant BP (BP) has decided to close two of its Caspian Sea oil lines that travel through the region. The company says this is being done as a precaution; neither of the lines have been reportedly hit by Russian weaponry.

Shares as of mid-day are up 1-and-a-quarter percent to roughly $61 per share. This, however, is a far cry from the Zacks target of $77 per share. BP is currently listed as a Zacks Rank #2 (Buy), though analysts have been mixed in their outlook on company earnings recently.

Currently, BP shares are expected to fetch $3.02 per share in the company’s Q3, ending September. This $3.02 mark is what BP posted in its Q2 as well, which represented a 6.7 percent positive surprise.

For now, shutting down the two fuel lines will keep hundreds of thousands of oil barrels per day from being shipped. The Western Route Export Pipeline (WREP) by itself producers 155,000 barrels per day.

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