BP Q4 2014 Preview: The Decline In Oil Prices and Ruble To Weigh On Upstream Earnings

The average Brent crude oil spot price declined by more than 30% year-on-year during the fourth quarter. This is expected to result in thinner operating margins on BP's spot crude oil sales. In addition, the company's consolidated upstream earnings would also be negatively impacted by the sharp depreciation of the Russian Ruble against the U.S. dollar because of its shareholding in Rosneft, Russia's state-owned oil and gas company. However, on the downstream side, we expect an improved global re...