BP shares sink to bottom of FTSE100 as Rosneft stake fears emerge

(MENAFN- ProactiveInvestors) Oil titan BP (LON:BP.) saw shares sink to the bottom of Footsie Monday as the crude price crunch and the weakness in the Russian rouble combined to potentially hit the oil giant where it hurts.

The company has an almost 20% stake in the Russian state-owned group Rosneft which is one of its key investments.

A report in the Financial Times said City analysts reckon the slide in the rouble and the fall in crude prices will lead to a big Q4 loss on the stake  - as much as US$750mln.

In the first nine months of last year Rosneft  accounted for nearly a third of BP’s total oil and gas output. It delivered US$1bn of net income during the second quarter.

The oil price slide seems to show no signs of halting. Today Brent crude endured a 1.8% drop to US$55.42 per barrel. This is a new five and a half year low.

The price has slumped around 50% since June last year.

Meanwhile the rouble sank another 1.2% to stand at 59.45 against the US dollar which is at a nine year high.

The rouble's decline comes amid the Ukraine conflict and sanctions imposed on Moscow.

BP shares slumped 2.56% tp 399.95p.