BP (LON: BP) share price has been experiencing increased selling pressure today. The shares are changing hands at 472.8p and are 2.1% down from their previous close. The shares of the energy giant are currently trading 17% below its 2023 high, at 566p. BP has been in a sideways trend since May.
The price of crude oil is in a tailspin after being rejected from a critical resistance level of 86.6p. This decline can be attributed to the recent release of China’s economic data. The data published showed a sluggish recovery after the pandemic, leading to the current correction in the oil price. Following the footsteps of crude oil, BP shares also tanked.
BP Cites Supplier Delays for LNG Shortage
Venture Global supplies LNG to BP, Shell, Edison International, Repsol, and Galp. Shell, Edison, and BP are taking Venture Global to arbitration for breach of contract, alleging that the company failed to supply contracted cargoes and instead sold the fuel into the spot market.
Last Week, BP announced its earnings for the second quarter period. The sale and operating revenue saw a massive 28.5% decrease to $48.54 billion, even below analysts’ expectations of $54.48 billion. Additionally, BP’s net debt increased by 0.37% from $22.82 billion to $23.66 billion. These figures could be a reason behind the ongoing pullback in BP share price.
BP Share Price Gets Rejected From 200 MA
The LON: BP price chart shows that the price is currently trading 3.4% below the 200 MA. The bearish earnings report destroyed the bullish pressure when the price tried to break above the 200 MA. The price is now expected to slide to the drawn support level of 465p for a retest.
If the price successfully bounces off the 465p support level, the bulls will be eyeing another retest of the 200 MA. However, if the bears overpower the bulls and break the 465p support, it could trigger a sell-off, and 450p will be the next target for the bears.
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.
