U.S. regulators were investigating BP Plc on Monday for possible insider trading related to its Gulf of Mexico oil spill, a move that may hurt the energy giant's efforts to restore investor confidence.
Details of the probe emerged as BP prepared to deliver the first of what it hopes will be two knockout blows to "kill" its ruptured Macondo well, 105 days after it started gushing out millions of gallons of oil, causing an environmental disaster.
Two sources familiar with the preliminary Securities and Exchange Commission probe said the alleged insider trading took place after the start of the BP oil spill on April 20.
At issue is whether people illegally profited from trading on non-public information at BP. Investigators are also looking at whether the company properly disclosed information on risks related to its deepwater Gulf operations, one source said.
A BP spokesman did not immediately return calls for comment, but the investigation comes at a bad time for the British company. It is trying to rehabilitate its image and tamp down widespread public anger in the United States over its handling of the spill, the worst in U.S. history.