What happened: Royal Dutch Shell, BP, and other oil and gas companies are under intense pressure to cut their emissions. In a setback yesterday, Shell lost a landmark case in which the court ordered it to increase its emissions cut.
It asked the company to ensure that its net carbon emissions were 45% lower in 2030 than where they were in 2019. She said that the company’s plans were not concrete enough. The ruling means that other climate activists will likely file similar cases targeting other companies.
The outcome of the case came on the same day that Engine No 1 scored a major victory in the United States. The hedge fund managed to convince ExxonMobil shareholders to vote for two additional board members. The fund has put more pressure on the company to set clear targets to reduce emissions. In addition, shareholders at Chevron also voted for the company to cut its emissions substantially.
The new victories mean that the oil supermajors will need to invest more resources on alternative energy sources like wind and solar.
BP share price forecast
You can read our recent article on the Shell share price forecast here. On the daily chart, we see that the BP share price has been in a tight range recently. The stock is trading at 310p, which is between the 23.6% and 38.2% Fibonacci retracement levels.
It has also formed a small ascending channel and is at the same level as the 25-day and 50-day weighted moving averages. While it is too early to tell, there is a possibility that the shares will bounce back as investors target the 50% retracement at 347p. This prediction will be invalidated if the price moves below the support at 300p.
BP stock chart
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