BP shares rallied on Friday on a technical rebound after recent heavy losses caused by a flood of negative news over the Gulf of Mexico oil spill crisis, dealers said. In late morning trading, the company's share price climbed 6.85 percent to 390.5 pence on London's FTSE 100 shares index, which was 0.84 percent higher at 5,175.69 points. Despite the modest gains, BP's share price has plunged by as much as 49 percent -- wiping tens of billions of dollars off its market value -- since the Deepwater Horizon rig which BP operates sank on April 22. The accident, following a deadly explosion, sparked an enormous oil spill from a leaking well head on the ocean floor. CMC Markets analyst James Hughes described Friday's gains as an 'inevitable bounce after the moves of the last few days', but warned that the share price may have further to fall. The stock had plunged on Thursday, striking a low of 330 pence, as investors fretted about the financial impact of the oil spill and the possible loss of the group's shareholder dividend. BP said Friday it was considering cutting its dividend payments, as US officials more than doubled the estimated size of the Gulf of Mexico oil leak soiling fragile shores. 