BP PLC (NYSE:BP) is poised to make changes in its highly profitable trading unit, shifting its strategy to emerging markets.
Those changes could end up resulting in the loss of jobs throughout the division, which has offices around the world. The BP trading unit is the largest oil trader in the world.
Profits have been under pressure because of the lack of volatility in the oil market, as prices have been stable over the last year, moving from a range $70 to $85 a barrel.
Consequently margins have dropped along with earnings in the division, which is a major driver of profits at the company, although it's not reported on separately.
The strategy will be to lower costs, which in the beginning will include letting people go.
The division will be under review for several weeks before a final decision is made
Emerging markets being look at to expand in include China, India and Brazil, along with some parts of West Africa.
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