Pandemic drives BP to first loss in a decade

BP plunged to a $5.7 billion loss last year, its first in a decade.

The global health crises and subsequent restrictions took a heavy toll on oil demand.

And the energy giant warned on Tuesday (February 2) of a tough start to 2021 amid widespread travel restrictions.

The full-year loss compared with a profit of $10 billion in 2019.

Despite the weak environment, CEO Bernard Looney told Reuters that the company's transition to a greener future remains on track.

BP shares were down over 3 percent in morning trade though.

They've lost more than 40% of their value over the past year and remain near 25-year lows.

Not only battered by concerns over oil demand, BP faces doubts over its ability to successfully carry out an ambitious renewable energy plan.

While the company flagged a weak start to 2021, oil demand is nevertheless expected to recover this year.

And analysts expect global inventories to return to their five-year average by the middle of the year.