The BP share price could see a near-term correction with the price of oil as crude shows hints of stalling its recent gains.
WTI crude oil has soared to highs above $85 recently but is now trading under the $83 level. There is still a possibility of oil returning to the heady heights of $100 but a pullback is possible first.
The price of crude is still important to BP but analysts have also cheered its pivot towards cleaner energy. An interesting recent deal was the decision to invest in real estate and technology startup Blueprint Power announced in early October.
The latest deal is part of the oil major’s transformation and will allow BP to utilize Blueprint Power’s technology, which seeks to make buildings virtual power plants by connecting them to energy markets through cloud-based software.
According to both companies, the technology can turn ordinary commercial buildings into a “flexible power asset”, which can generate, store and trade renewable energy.
BP plans to build its renewable energy capacity to 20 gigawatts by 2025 and 50 gigawatts by 2030.
BP Price Forecast
The price of BP is trading at 355p and is showing signs of a potential near-term high. The key target on the upside is at 385p, where the stock previously gapped lower on the weekly chart. BP would need to get above that level but it would open up the chance of 500p levels. The downside target for a pullback is at 315p.
BP Price Chart (Daily)
