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Could BP really suspend dividends?

Overnight the dispute regarding the Gulf of Mexico oil disaster has intensified with Pres. Obama suggesting that BP should suspend all dividend payments in the short-term to cover the cost of cleaning up after the oil spill. So would BP really consider suspending dividends?

Earlier this week the BP management step forward to confirm that there was sufficient cash flow and sufficient assets within the company to cover the cost of the oil disaster and any compensation which may follow. Therefore it seems highly unlikely that the management of BP would in any way consider suspending dividends in the short to medium term although there is a possibility that growth in dividends in the short-term could be curtailed.

More and more people believe that Pres. Obama is effectively trying to deflect any blame from his government and using any tactics possible to gain favour with US voters. Whether this will work remains to be seen because he would appear to be putting the "special relationship" between the US and the UK authorities at risk. The next few days should hopefully see David Cameron speaking up on the behalf of the UK and rebalancing the current negative media slant.

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