- BP share price's upside gains came to an end after two sessions as US oil glut and the company's weak fundamentals returned to focus.
BP share price traded downwards on Thursday, reflecting the broader decline in crude oil prices. Oil markets were rattled today, losing traction despite news of Iran’s refusal to cooperate with the UN’s nuclear watchdog. The commodity rose on Wednesday on fresh concerns over stability in the Middle East.
While such headlines often push oil prices up due to supply fears, today’s reaction was more subdued. That was likely because markets were also digesting news of a larger-than-expected build in U.S. crude inventories. According to the latest data, U.S. stockpiles rose significantly, coming in at 3.845 million barrels, against the forecast 3.5 million. That signaled weaker demand or oversupply, which in turn dragged crude prices lower.
However, despite the headwinds, BP share price continues to find support in the ongoing share buyback program. The company is actively pursuing a share buyback program, part of its broader capital return strategy.
That said, investors also remain cautious the company’s recent earnings miss and its ongoing strategic pivot away from renewables and back into traditional oil and gas. That mix of uncertainty and underperformance compared to rivals like Shell continues to cloud sentiment.
Furthermore, the momentum created by company’s strategic turnaround, especially its shift away from renewables and refocus on oil and gas under CEO Murray Auchincloss, has failed to reassure investors.
BP Share Price Prediction
BP share price pivots at 382.55p and the momentum calls for an extension of the downside. With the sellers in control, the stock will likely find initial support at 376.65p. A stronger momentum will break below that level and potentially test 370.65p.
On the other hand, breaking above 382.55p will favour the buyers to take control. That will likely see initial resistance encountered at 387.20p. Breaking above that level will invalidate the downside narrative. Furthermore, an extended control by the buyers could push the action higher to test 393.25p.
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