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BP loses latest US oil spill appeal

The Deepwater Horizon oil spill Image copyright Reuters
Image caption BP has set aside around $43bn to compensate victims of the Gulf of Mexico oil spill

The US Supreme Court has rejected oil giant BP's legal challenge to a compensation deal over the 2010 Gulf of Mexico oil spill.

It means BP will have to make the payments that stem from the explosion of the Deepwater Horizon oil rig.

BP argued that the deal meant it could fall prey to inflated or bogus compensation claims.

BP agreed to the compensation deal in 2012, but argues it has been misinterpreted.

Shares in BP fell 1.7% in London on Monday.

Market Data - BBC News

Market Data

Share Prices

Markets

UK markets
UK markets % change Value
Change
-0.03%
7300.23
-1.87
+0.41%
20458.27
+83.88
Europe markets
Europe markets % change Value
Change
+0.41%
543.06
+2.21
+0.28%
5363.79
+14.92
+0.51%
12157.67
+61.26
+0.37%
3358.46
+12.35
+0.46%
9447.50
+42.90
US markets
US markets % change Value
Change
+0.71%
26246.96
+184.84
+0.76%
7956.11
+60.32
+0.54%
2904.31
+15.51
Asia markets
Asia markets % change Value
Change
+0.25%
37385.06
+94.39
+1.41%
27465.59
+380.93
+1.24%
23711.81
+291.27
As of 05:55 19 Sep 2018

Currencies

GBP
% change One £ buys
Change
GBP against Euro
-0.07%
€1.1260
-0.0010
GBP against Yen
-0.02%
¥147.7150
-0.0300
GBP against USD
+0.06%
$1.3155
+0.0010
USD
% change One $ buys
Change
USD against Euro
-0.13%
€0.8558
-0.0010
USD against GBP
-0.06%
£0.7601
0.0000
USD against Yen
-0.08%
¥112.2800
-0.0850
Euro
% change One € buys
Change
Euro against GBP
+0.08%
£0.8882
+0.0010
Euro against Yen
+0.05%
¥131.1850
+0.0700
Euro against USD
+0.16%
$1.1687
+0.0020
Yen
% change One ¥ buys
Change
Yen against Euro
-0.05%
€0.0080
0.0000
Yen against GBP
+0.02%
£0.0070
0.0000
Yen against USD
+0.08%
$0.0090
0.0000
As of 05:55 19 Sep 2018

Commodities

Oil
Commodity % change dollars per barrel
Change
Brent Crude Oil Futures
+0.06%
79.08
+0.05
WTI Crude Oil Futures
+0.09%
69.91
+0.06
Gold
Commodity % change dollars per ounce
Change
Gold (Forex Index am fix)
+0.22%
1199.40
+2.60
Gold (Forex Index pm fix)
-0.14%
1200.20
-1.70
Natural Gas
Commodity % change dollars per million BTU
Change
Natural Gas (Henry Hub Futures)
-0.27%
2.93
-0.01
As of 05:54 19 Sep 2018

BP asked the Supreme Court to consider whether people and businesses seeking payments under the settlement included individuals who had not actually suffered any injury as a result of the oil spill.

The Supreme Court's rejection of this appeal by BP is the latest in a series of setbacks for the oil firm.

BP is trying to limit payments over the environmental disaster, which claimed the lives of 11 people and became the largest US offshore oil spill in history.

The settlement agreement has no cap, but BP initially estimated that it would pay roughly $7.8bn (£6.1bn) to compensate victims.

It now says it can no longer give a reliable estimate for how much the deal will cost.

BP has already paid out $2.3bn in so-called business economic loss claims out of a total of $4.25bn in compensation claims to individuals and businesses, according to Patrick Juneau, the administrator appointed by the courts to handle claims.

The settlement process is also separate from other court proceedings relating to the spill, including environmental and criminal penalties.

BP has set aside $43bn to resolve all claims.

In September, a US judge ruled BP was "grossly negligent" in the lead-up to the 2010 oil spill.

The New Orleans judge Carl Barbier also found BP subcontractors Transocean and Halliburton "negligent".

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