- BP stock price has declined by about 6% from its opening position in September and investors are assessing whether there's a way back up.
British petroleum company BP P.LC. (LSE: BP) had a tough run in September. Its stock price has not registered meaningful gains, even though the market as a whole was rather volatile. BP stock price started the month at 439p on September 3 and have been going down since then.
It touched a low of 412p on September 19, which is nearly 6% lower than its monthly highs so far. This poor performance is in contrast to the FTSE 100’s modest gains, and points to the pressures in the energy sector caused by changes in commodity prices and geopolitical uncertainty.
In addition, BP’s decision to cut back on renewables, such selling U.S. onshore wind assets and cutting $5 billion from its clean-energy pipeline, has also gotten mixed reviews. With all of these factors in play, is BP stock a good investment?
Why BP Has Stagnated in September
There are a couple of reasons why BP hasn’t been able to keep up its momentum lately. It is worth noting that the company’s stock has not done as well as other stocks in the same industry or the market as a whole. The FTSE 100 Index and the energy sector have both gone higher, with BP stock price evidently having a hard time keeping up. This is an indicator that investors may be becoming cautious, partly due to its recent change in strategy.
The stock is currently below the middle Bollinger Band, with the daily RSI at 50.88 signaling neutral-bearish conditions. Support is currently at 417.70p and a break below that level could decisively shift the momentum to the downside. Meanwhile, the second support lies at 410p while medium-term resistance is at 400p.
BP’s Q2 2025 earnings were better than expected, with an underlying profit of $2.4 billion. However, they were lower than the previous year since its oil production and operations were not as good. In terms of segments, a rise in gas and low-carbon energy was countered by challenges with upstream oil, which were made worse by fluctuating crude prices.
Brent crude price has been trading between $70 to $75 per barrel in September, down from higher levels earlier in the month. This is partly attributed to rising concerns overs a potential downturn in global demand due to economic uncertainty in China and the possibility of oversupply.
Potential Catalysts
Some analysts and activist investors have viewed the company’s move to focus more on its oil and gas businesses as a positive development. The objective of this change in strategy is to increase cash flow and profits. If it works, it could unlock a lot of value and cause the stock price to go up in the future.
A major oil find in Brazil of 2–2.5 billion barrels and a gas development deal in Egypt are two of the catalysts that could help the company reach the target of producing 2.5 million barrels of oil equivalent per day by 2030. The company has also put shareholder returns at the top of its list of priorities. It has sold off $3 billion worth of assets. In addition, it plans to use 30% to 40% of its cash flow for dividends, including buybacks. Strong operational efficiency in the second quarter and increased global energy consumption from data centers could come in handy.
One of the best things about BP is that it has maintained a trend of paying high dividends. In 2025, the yield is expected to be over 5%. The corporation has a policy that its dividend must go up by at least 4% every year, and it keeps buying back its stock. This makes BP stock a good choice for those who are keen on long-term income.
Final Thoughts
BP stock price momentum is currently unstable due to market uncertainty regarding the company’s future plans and the unpredictable nature of the energy industry. Short-term momentum may not be easy to build up, but the long-term fundamentals indicate to a good time to get in. Investors need to assess the company’s Q3 earnings on November 4 for further clarity.
BP stock price has been affected by a strategic shift, pulling back on renewables, and volatility in crude oil prices, which have created investor uncertainty.
The stock’s recent drop could last longer because of changes in commodity prices, regulatory pressures, and strategy shifts.
A key attraction is its high dividend yield, which is forecast to be over 5% and is supported by a policy of increasing the dividend annually.
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