BP (LON: BP) share price has been on a downward trend since February 2023. During this time, the price has fallen from a high of GBX 570.57 on January 24 to GBX 448 on June 17. This decline has been driven by a number of factors, including the volatility in oil prices and soaring inflation.
Despite the recent decline, BP’s stock is still trading above its 52-week low of GBX 386. Reports reveal that the analysts have a consensus rating of “Moderate Buy” on the stock. This suggests that there is still some upside potential for BP shares in the coming days.
Why Is LON: BP Rising?
The recent rebound in BP plc comes as no surprise. It can be attributed to the ongoing rally in oil prices which have soared to their highest level since April 2023. While oil prices are up more than 14% from their June lows, BP share price hasn’t shown a similar surge.
Being an energy stock, BP stock shows a strong correlation to the crude oil price. On Tuesday, the stock opened higher, but the price fell due to a weakness in Brent Crude price. At press time, the shares of the British oil giant were changing hands at 482p after a 0.39% drop.
BP Share Price Forecast – August 2023
As described earlier, LON: BP seems to have more upside. The following chart also shows that the shares are heading for a retest of the 200-day moving average. The indicator currently lies at 490p, which is almost 2% above the current price of 482p. Just above this level, there also lies a key trendline which might also be retested in the coming weeks.
BP share forecast depends on the bulls’ ability to flip the 465p level into support. This has been a very critical level for the shares for the last one year, and the breakout above it must be confirmed by a retest. The upcoming FOMC meeting in the US will keep the price in check for the rest of the week.
In the meantime, I’ll keep sharing updated BP share price analysis and my personal trades on my Twitter, where you are welcome to follow me.