Shares of BP fell Monday as the company's board met in London to decide whether to suspend its dividend because of the oil spill in the Gulf of Mexico.

BP shares closed down $3.30 US, or 9.7 per cent, at $30.67 US on the New York Stock Exchange. They have lost almost half their value since the deepwater rig explosion April 20.

A video still provided by BP shows oil continuing to pour out at the site of the undersea oil well in the Gulf of Mexico on Sunday. (BP/Associated Press)

The company was not expected to announce a decision on the dividend until Wednesday, when executives are to meet with U.S. President Barack Obama.

U.S. politicians have been calling for the firm to withhold its dividend until the British company pays for the cleanup and provides compensation.

BP has a number of options. It could scrap the dividend altogether, but most analysts expect the payout will be deferred or held in an account until claims and costs have been paid.

The board meeting in London meeting came as Obama began a two-day visit to the Gulf Coast to view the damage from the massive spill and to talk to affected residents.

BP shares plunged 15.8 per cent on June 9 after U.S. Interior Secretary Ken Salazar said he would ask BP to compensate energy companies for losses if they have to lay off workers or suffer economically because of a six-month moratorium on deepwater drilling imposed by the Obama administration following the rupture at BP's well.

Cutting the dividend would have a big impact in Britain, where the company accounts for about an eighth of dividend payments from companies in that country's blue-chip stock index, providing crucial income for retirees.

In addition, about 40 per cent of BP's shareholders are based in the U.S.

With files from The Associated Press