The BP share price is under pressure ahead of the company’s fourth-quarter and full-year earnings that are scheduled for Tuesday next week. The stock is also falling because of the growing risks in the stock market.
What’s happening: BP share price is down by more than 2.8% today becoming one of the worst performers in the FTSE 100. Similarly, Shell’s share price has fallen by more than 2.5%. There are three main reasons why shares of the biggest energy group in the UK are falling.
First, the price of crude oil is down by more than 0.50% today as investors react to the dovish statement by the Federal Reserve. In its statement yesterday, the Fed warned that the American economy was still in peril as the number of coronavirus cases continues to rise. Oil prices and stocks tend to do well in periods of a strong economy.
Second, the shares are falling in response to a warning by Blackrock that it will sell shares in fossil fuel companies that don’t show a commitment to clean energy transition. As the world’s biggest investor, the company tends to be highly influential. Therefore, it means that BP and its peers will have to invest more in clean energy in the near term. Just this week, Royal Dutch Shell announced that it was acquiring Ubitricity, a major electric vehicle charging company.
Finally, BP share price is falling as investors wait for its earnings that will come out on Tuesday.
BP Share Price Forecast
On the four-hour chart, we see that the BP share price soared to a YTD high of 311p and then lost momentum. In total, it rose by about 66% from October to January 13. On the four-hour chart, the 25-day and 15-day moving averages have made a bearish crossover. It has also moved below the important support at 286p, which was the highest point in December.
Therefore, there is a possibility that the price will continue falling as bears target the next support at 260p. However, a move above 286p will invalidate this trend.
BP Shares Chart