No Oil Gushing Sends BP's Stock Climbing

At around 3:35pm this afternoon, the market learned that BP's new cap had stopped oil from gushing into the Gulf of Mexico for the first time since April. I immediately g-chatted a friend of mine with the news, half-jokingly telling him to quickly buy BP stock. Apparently, I wasn't the only one with the bright idea. Here's what happened via Yahoo! Finance:

bp 2010-07-15.PNG

It dipped a little at the end there, but that's a pretty steep spike. The stock closed 4% higher than it was at 3:34, thanks to the last 25 minutes of trading. At that point it was at $38.94. As I type this, it was rising further in after-hours trading, back up to $39.38 at 4:10pm, which is an increase of 9% on the day. If you bought the stock on June 25th, when it was trading for $27.02, the you're feeling pretty smug right about now, having made 46% in a couple of weeks.

If this cap is really doing the trick, this is incredibly good news for the firm. Obviously, a whole lot of damage has been done, and the total price tag isn't known. But the market's worst-case fears must have imagined that it would take even longer than this to stop the leak. If the oil gushing has truly ended, then the liability owed from the accident will find a finite ceiling. And as bad as it will be for BP, it undoubtedly could have been even worse.

Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

A Miniature 1950s Utopia

A reclusive artist built this idealized suburb to grapple with his painful childhood memories.

Video

Why Principals Matter

Nadia Lopez didn't think anybody cared about her school. Then the Internet heard her story.

Video

A History of Contraception

In the 16th century, men used linen condoms laced shut with ribbons.

Video

'A Music That Has No End'

In Spain, a flamenco guitarist hustles to make a modest living.

More in Business

Just In