- B.P. Stock price has declined more than oil prices, with company-specific fundamentals triggering negative sentiment
- The company just hired its first CEO from outside the company in 100 years
- The US-Venezuela geopolitical tension provides some support to oil prices
BP stock (LSE: BP.) has been under pressure, trading around 419-420p. This is a drop from November’s highs near 476p. The stock has fallen faster than Brent crude due to energy sector instability. Brent recently settled at about $60 a barrel because of oversupply worries. But why is B.P share price nosediving at such a fast rate?
Behind the BP Stock Decline
Oil prices have dropped because of plentiful supply and concerns about demand. Brent hit lows as agencies like the IEA predict a surplus in 2026. However, BP stock fell further because of issues within the company. On December 17-18, 2025, CEO Murray Auchincloss left suddenly. Meg O’Neill from Woodside Energy will replace him in April 2026, becoming the first CEO hired from outside the company in over 100 years. The sudden changes in the company’s leadership has triggered a sense of uncertainty regarding its future.
Is a Reversal on the Horizon?
The odds of a near-term reversal hinge on two factors: technical oversold conditions and geopolitical “shocks.” President Trump’s recent blockade on Venezuelan oil tankers has provided a floor for crude prices, which could bleed into a relief rally for BP. However, unless the new leadership provides a clear, unwavering commitment to the current buyback and dividend policy, any bounce may be a “dead cat” variety.
If Brent stabilises above $60, supported by geopolitical factors or inventory draws, the stock could rebound swiftly. BP’s ongoing share repurchases and high dividend yield provide underlying support. However, persistent oil weakness or delayed execution under interim leadership could prolong the dip.
Is BP Stock Still Worth Buying?
The stock is trading at reasonable levels, supported by plans to sell assets and focus on oil and gas. At around 420p, BP stock looks like a good investment with a dividend yield above 6%, and analysts believe it will go up. For instance, Wolfe Research just raised its BP stock price target to $51 from $50 in the aftermath of the company’s announcement of a new CEO. For investors focused on income or those who like to buy when others are selling, it’s still appealing despite risks from commodity prices and the company’s adjustment to new energy sources. Long-term holders may view the recent weakness as an entry opportunity.
Geopolitical events could also trigger a stock price reversal for BP. Supply disruptions, such as the recent US-led blockade on Venezuelan oil, tend to spike crude prices. This can provide a temporary boost to BP’s share price, regardless of the company’s internal leadership or debt challenges.
BP Stock Price Prediction
BP stock is showing a downward trend short-term, with prices below the pivot mark at 421.40p. The Relative Strength Index at 30 denotes oversold, suggesting selling might be slowing down. If the buyers take over, key resistance will be at 430p, above which the next barrier is likely to be at 434.70, aligning with the current 10-day SMA. Key support is at 415-410p, with better support near 408.98p.
BP stock daily chart on December 19, 2025 with key support and resistance levels. Created on TradingView
Besides cheaper oil, BP’s stock is down because of a leadership discount after CEO Murray Auchincloss left unexpectedly. Investors are also worried about BP’s debt, which is higher than companies like Shell and Chevron.
According to Wolfe Research, the changes are positive for the long-term outlook of the company and it has raised its targets for the stock. Yet, there may be some ups and downs in the short term.
Yes, it could be. It has a high yield (over 6%) and price targets around 468-490p, which suggests it could go up. This might be good for investors looking for value and income.
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