The BP share price is up 0.83% this Tuesday as investors try to recover some of the recent losses sustained by the stock. Oil stocks have recently come under pressure from falling oil prices amid a stronger dollar and fears of a global recession. However, the BP share price has found immediate support from rising oil prices after the company and other oil majors paused offshore oil production in the Gulf Coast as Hurricane Ian approaches the United States.
According to a Monday Reuters report, Brent crude is trading 2.19% on this day, preventing the third day of losses as traders shift their immediate concerns to the shuttering of Gulf Coast production amid the approaching hurricane in the Caribbean.
Presently, Hurricane Ian is a Category 2 storm but is expected to strengthen significantly after clearing some Caribbean islands. BP is moving to evacuate workers from the Thunder Horse and Na Kika platforms, which collectively produce 380,000 barrels of crude oil and natural gas.
The storm is the first this year to affect Gulf Coast oil production. Oil production from the US Gulf Coast accounts for 15% of total US oil production. Here is the BP share price outlook as the storm picks up strength.
BP Share Price Forecast
The 430.90 support level remains under threat, despite attempts to block Monday’s intraday violation. If this support level breaks down, the 418.90 pivot (17 May and 15 August 2022 lows) becomes the next downside target.
If the bulls fail to defend this support, the bears will have access to the 405.70 price mark, where the previous highs of 15 February and 29 July act in role reversal. Additional targets to the south are found at the 400.65 psychological price level (10 May low/21 June high) and at the 385.75 pivot (28 July low).
On the flip side, a penetration close above the 430.90 price mark keeps this level as a support. The bulls would then have a basis to push toward 439.40 (22 August low and 9 September high) as the next resistance target. If the bulls uncap this barrier, they will have clear skies to aim for the 453.70 price mark (12/21 September lows).
The 467.65 resistance caps the most recent highs seen in September 2022. This resistance needs to go if the uptrend is to continue, with 478.75 (12 February 2020 high) becoming the immediate target to the north.