A known unknown is what effect a BP bankruptcy would have on energy prices, and what effect these price movements would have on the amount BP owes its counterparties. Hypothetically, if its bankruptcy moves energy prices, and these price moves impose losses on BP, its trading partners will suffer some losses as the result of a BP bankruptcy and default. The problem is, we won’t have any idea what the price response to a BP bankruptcy will be until it happens.
This situation is not an imminent crisis, but bears watching. If it moves, it will not move slowly, but with stunning speed.
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