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  • What will happen to BP plc (NYSE:BP) Now - Is $20 Billion Too Much

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    Monday August 9, 2010 at 01:15 pm EST

    The Darkest event in BP plc's (NYSE:BP) History has Ended; But Is it all Over?

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    The biggest Oil Leak Disaster in the History of United States has ended with the sealing of the Oil Well for Good. British energy major BP Plc has spent $6.1 billion in the aftermath of the devastating oil spill in the Gulf of Mexico, resulting in leakage of millions of barrels of its oil into the sea. 

    The Path forward for BP is not easy. BP has to sell its assets to collect $30 billion for the spill costs. BP (NYSE:BP) will also find it tough to avoid fraud claims in the US which are not uncommon

    Till August 7, BP had received 145,000 claims and over 103,900 payments worth $319 million have been made. About 30,800 personnel are still involved in the clean up operations.

    BP plc (NYSE:BP) said on Monday that it has already deposited $3 billion into the escrow account, for Which BP had agreed earlier to deposit $20 billion. BP will be paying $5 billion into the account in each of the next four years. BP will  be depositing $1.25 billion per quarter until the $20 billion is reached.

    Citigroup Inc. is selected as the corporate trustee while John Martin, a former federal judge in New York City, and Kent Syverud, dean of Washington University in St. Louis School of Law are selected as individual trustees of the account.

    BP plc (NYSE:BP) Shares are trading around $41.36 on Monday near resistance level of $41.31. 
    Upside Resistance levels - $42.32 and $48.45
    Support Levels - $38.32 and $36.3.

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