The BP share price is up this Friday as the stock benefits from rising demand in crude oil prices and its derivatives. The uptick in the BP share price follows that of Brent crude, up 1.10% as of writing, as demand continues to remain solid on China’s easing of the Shanghai lockdown. Gasoline demand in the US is also very robust, adding to the crude oil stocks shortfall in the US to put crude oil on a bid and keep prices high.
The combination of higher gasoline demand ahead of what is expected to be a busy summer and improved demand prospects from China are counteracting the weaker demand outlook provided by OPEC last week.
Technically, BP share price action for the day has been on the choppy side of things, as bulls and bears battle for market supremacy, with the bulls having a slight edge. However, the key resistance of 418.90 (11 February high) appears to be the cap limiting the bulls, following Wednesday’s strong rejection from the 400.6 support following a shock dropoff in US crude oil stocks.
BP Share Price Outlook
The 425.90 resistance looks set to be the next target in line for the bulls. If this price barrier is broken, the double top of 430.90 becomes the available target for the bulls. A break of the double tops invalidates the pattern and grants access to the 439.40 resistance. Additional targets to the north are found at 453.70 and 478.75.
On the other hand, rejection at the 425.90 price barrier brings about a retest of the 418.90 support. 405.70 is another southbound target, followed by 400.65 and 395.00 (19 January and 2 February highs in role reversal). A further price deterioration brings about a challenge on the 385.75, with 376.80 entering the mix under these circumstances.