StockMarketWire.com - Oil major BP warned of huge impairment charges and writedowns in the second quarter, citing a slump in oil prices owing to Covid-19 crisis.

The company said it expected to post impairment charges and write-offs for the three months through June in an aggregate range of $13bn to $17.5bn post-tax.

BP also cut its long-term oil price assumption while warning that weaker demand for energy could continue for a sustained period.

It now expected the average price of oil to be around $55 a barrel for Brent crude and $2.90 per mmBtu for Henry Hub gas, from 2021-to-2050.

'These lower long-term price assumptions are considered by BP to be broadly in line with a range of transition paths consistent with the Paris climate goals,' the company said.

BP also revised its carbon prices for the period to 2050 and these now include a price of $100 per tonnes equivalent of CO2 (teC02) in 2030.

'With the COVID-19 pandemic having continued during the second quarter of 2020, bp now sees the prospect of the pandemic having an enduring impact on the global economy, with the potential for weaker demand for energy for a sustained period,' BP warned. Story provided by StockMarketWire.com