Obama Comments Suggests BP's Liability is $105 Billion and Counting

Comments from President Obama on BP (NYSE: BP) somewhat confirmed that at least 50,000 barrels of oil per day could be gushing out of the Gulf oil well.

Obama said BP and the government are working to increase the capacity of oil siphoned from the well to 50,000 barrels per day.

Based on this new 50,0000 number, a total of 2.75 million barrels could have already leaked from the well. BP has now collected a total of 127,000 barrels of oil with its containment cap. This would leave a much as 2.62 million barrels of oil floating around in the Gulf.

Based on estimates from Goldman Sachs analysts, it could cost BP $40,000 per barrel for clean-up and litigation costs stemming from the leak. This would put the company's liability at $104.8 billion and counting.

The company is expected to decide soon if the dividend will be cut and now the Obama administration will be pressing for a third-party administered fund from BP to cover clean-up expenses.

While the amount of the fund is not known, a White House officials said it would be "substantial." Senate Majority Leader Harry Reid and other Democrats said the BP fund should be $20 billion.

BP's Chairman Carl-Henric Svanberg and the President will be meeting on Wednesday to discuss the spill.

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