BP and Shell Hit as Oil-Trading Boom Ends

The video discusses the impact of fluctuating oil prices on the upstream and downstream sectors of the oil industry, highlighting how these changes affect profitability. It examines BP's financial strategy, noting the company's need for oil prices to reach $60 per barrel to balance its books. The video also explores the potential impact of lifting sanctions on countries like Russia and Iran, emphasizing that while it could be beneficial, it won't change the immediate outlook for 2017.

What is the main challenge faced by the downstream sector as oil prices rise?

• Decreased demand for oil

• Higher transportation fees

• Squeezed refining margins

• Increased production costs

How does BP's financial strategy differ from Shell and Exxon?

• BP relies more on upstream profits

• BP needs higher oil prices to balance its books

• BP has lower production costs

• BP focuses on renewable energy

What oil price does BP need to balance its books?

• $60 per barrel

• $65 per barrel

• $55 per barrel

• $50 per barrel

What is the expected impact of lifting US sanctions on Russia and Iran on the oil industry?

• Decrease in oil prices

• No immediate change in 2017 outlook

• Significant change in 2017 outlook

• Immediate increase in oil production

Why might oil companies be hesitant to return to Russia even if sanctions are lifted?

• Lack of infrastructure

• Uncertainty about terms

• High operational costs

• Political instability