BP steps up its cost-cutting drive

Oil giant BP has announced a 53% year-on-year drop in second-quarter profits. To balance its books, it's going to have to make another $1bn of savings.

Oil giant BP has announced a 53% year-on-year drop in second-quarter profits. That's due to falling oil prices and weak refining margins. The average oil price for the company's sales in the quarter was just $53 a barrel, compared to $110 last year. Chief executive Tony Hayward reiterated his view that $60-$90 is a "sensible" price for oil, but given "little evidence of any growth in demand" oil prices look set to trade in the bottom of the range for now.

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