MARKET TALK: BP Share Price To Remain Volatile - RBS

1303 GMT [Dow Jones] BP's (BP.LN) share price is likely to remain volatile, with income funds selling and value investors tempted to buy, says Royal Bank of Scotland. Says although the anti-BP rhetoric from the US President may stop, at least for now, uncertainty about the ultimate cost of the oil spill is still extremely high. Notes the company's decision to set up a $20B escrow account and suspend its dividend, adding BP's growth prospects are damaged. Says BP's intention to cut capex by around $2B per annum in '10/'11 and to increase planned divestments over the next year, along with the dividend suspension, will have a modest negative impact on medium-term growth prospects. Maintains a hold rating. Shares +2.2% at 368p. (michele.maatouk@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 18, 2010 09:03 ET (13:03 GMT)