BP (LON: BP) share price has been showing extreme volatility since the start of 2023. The shares of the British petroleum giant had an 18.6% surge in the first six weeks of 2023. However, the price had a sharp pullback in March. Consequently, the shares are trading 16.2% below their yearly highs.
On Thursday, the UK stock market depicted a mixed sentiment. The benchmark FTSE 100 index was trading sideways till press time without any significant gain or loss. BP shares also opened higher today, but the candle turned red as the day progressed. Nevertheless, at the time of press, the shares were up 0.84%.
BP PLC Shares Rebound Amid Extended OPEC+ Cuts
As per the most recent BP plc news, the energy giant has won a tender to handle 2 million cubic meters of gas annually at Rotterdam’s Gate terminal. PetroChina International will also get access to the same terminal. This will be the first time that a Chinese company has been granted this type of access in Europe.
After its recent meeting, OPEC+ announced to extend the production cuts to 2024. On the same day, the major oil producer, Saudi Arabia, also announced to voluntarily another 1 million barrels per day from its production. This news acted as a tailwind for BP share price which rebounded from its May lows.
BP Share Price Hangs By A Thread
The following LON: BP chart reveals that the price has formed a head & shoulders pattern on the daily chart. The neckline of this pattern currently lies at 467p. Currently, the shares are trading above the neckline of this pattern after getting a strong bounce.
The technical analysis reveals that BP share price forecast will become extremely bearish if the stock breakdowns below the 467p level. This may act as a bearish confirmation signal with a bearish target of 362p in sight. This target comes by considering the measured move of the head & shoulders breakdown.
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