A New Zealand BP petrol station showing the decline in prices on April 11. Photo: Hagen Hopkins/Getty Images

Oil-and-gas giant BP reported an extremely steep decline in quarterly profits on Tuesday in a stark sign of how the collapse in demand and prices is affecting the world's biggest producers.

Driving the news: The London-based multinational posted a quarterly profit of roughly $800 million, a two-thirds drop from $2.4 billion in the same period last year.

  • The results reflect lower prices, and "demand destruction" in March, among other forces. "The environment is brutal," CEO Bernard Looney told the Financial Times.

Why it matters: The report provides fresh detail into how the sector is planning to navigate a tough new landscape.

  • "I think we’re in this for quite some time," Looney told Reuters. The company reported an increase in debt.
  • BP, which has already announced a deep spending cut, said it's taking other steps to shore up its finances, including a new $10 billion credit facility.
  • The company said it's planning for a breakeven point below $35-per-barrel (Brent) in 2021.

What's next: More tough reports. Shell posts its results on Thursday, followed by ExxonMobil and Chevron on Friday.

  • And looking ahead, the second quarter is likely to be even tougher. The International Energy Agency sees far greater demand loss during this period, with the trough coming in April and only slight recovery in May.
  • BP expects its production to fall next quarter, and demand for refined fuels will be "significantly lower in BP’s key European and North America businesses."

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NIAID director Anthony Fauci told CNN's chief medical correspondent Sanjay Gupta on Wednesday that it is "totally unacceptable" that Gupta was unable to test a patient for the coronavirus before operating on them.

Why it matters: Mass delays in coronavirus test results across the U.S. have thwarted mitigation efforts recommended by public health experts, per the New York Times. In absence of a federal plan, a bipartisan group of governors on Tuesday proposed one of the country's first interstate testing strategies.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

An uptick in coronavirus cases in Europe is stoking fears that some countries, including France and Germany, could see a second wave, The New York Times reports.

The big picture: Both Germany and France have reported their highest number of new daily COVID-19 cases in months this past week. Some coronavirus mitigation efforts, like social distancing, aren't being enforced as strongly as they previously were.

Coronavirus hastens Big Oil's Atlantic divide on climate change

Illustration: Aïda Amer/Axios

The pandemic is accelerating a divide between European and American oil companies over climate change and clean energy.

Why it matters: Bottom lines and investor returns will be vastly different across the corporate spectrum depending on how aggressively the world tackles climate change in the coming decades.