Shares in BP jumped as much as 7 per cent to a seven-month high in London on the first day of trading in the new year as investors bought back into the stock after news that its compensation pay-outs for the Gulf of Mexico spill might be much lower than anticipated.
Fresh reports that rival Royal Dutch Shell considered a take-over bid for the UK oil group also helped drive up the shares.
BP’s shares rose 7 per cent, the most since July 12, to an intra-day high of 498.05p in late afternoon in London on Tuesday and closed up 5.9 per cent at 493p.
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