BP share price extended its previous day’s gains into Thursday ahead of the release of the key US inflation data. at the time of writing, the stock was trading 0.85% higher at 482.45p.
BP Plc operates as an integrated oil and gas company. It is one of the oil and gas “supermajors” and one of the world’s largest companies measured by revenues and profits. BP is the fourth largest-investor owned oil company in the world by 2021 revenues. It currently has a total market capitalization of £86.385 billion.
BP Plc has recorded strong performances in the past few years, with consistent revenue growth and increasing free cash flows. The company has strong financial health boosted by its diverse range of operations including exploration and extraction, refining, distribution and marketing, power generation, and trading.
With BP’s strong financial performance, the company is expected to continue rising. Crude oil prices also play a significant role in the directional move of BP share price. Oil prices have been steadily rising for the past few days as China’s demand outlook improves. At the time of writing, Brent crude oil was up by 0.34% to trade at $82.98 per barrel, while US West Texas Intermediate (WTI) crude was trading 0.41% higher at $77.76 per barrel.
Investors will be closely watching the US Consumer Price Index (CPI) data for December, which is set to be released later Thursday. Economists expect to see a slight decline in December’s inflation. Even so, the decline might not be enough to stop the Federal Reserve from hiking interest rates.
BP Share Price Forecast
2023 might be a good year for the BP share price as the stock points to continued growth. The stock is moving slightly above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is currently at 52, which is in the neutral zone.
Therefore, the BP stock price is likely to continue climbing in the upcoming months. Bulls need to gather momentum to push the price past the key resistance at 505p. A decline below the important support at 421.60p will invalidate this view.