BP share price has been on a strong bullish run for the past few months as demand for oil and gas stocks rise. The stock has been among the top movers in the European stock market alongside other energy companies including Shell Plc. The BP stock price ended its earlier trading session 6.52% higher at 488p.
BP share price has been on a strong bullish trend for the past few months, jumping more than 49% this year. The company’s outstanding performance this year has been boosted by its strong financial results. in the latest quarter, the company reported a jump in its underlying profit to $8.2 billion while its operating cash flow climbed to $8.3 billion. The firm also reduced its total debt by $22 billion.
BP’s performance has also been boosted by the rise in oil prices. Oil prices climbed in early trade on Wednesday after industry data showed US crude stockpiles fell more sharply than expected last week. Oil prices rose 1% in the earlier trading session after top exporter, Saudi Arabia said that OPEC+ was sticking with output cuts and could take further steps to balance the market.
According to analysts, uncertainty over how Russia will respond to plans by the Group of Seven (G7) nations to cap Russian oil prices supported the markets further. The price cap is yet to be announced but due to be in place by December 5, a day after OPEC+ meets to review output.
Investors’ confidence in the firm has also boosted its stock price. The British multinational oil and gas company recently announced that it would be spending $2.5 billion in share buybacks, which is likely to propel the prices in the long term. The firm has already repurchased $8 billion worth of stock this year and is looking to reduce its debt.
BP Share Price Forecast
The daily chart shows that the BP share price has been on a strong rally for the past few months. The stock has managed to move above the 25-day and 50-day moving averages. Along the way, it has moved above the ascending trendline shown in violet. Its Relative Strength Index (RSI) is neutral at 56.
Therefore, the BP stock price is likely to continue its bullish trajectory as bulls eye the key resistance at 505p, its highest level this year. On the flip side, a move below the key support level at 457p will invalidate this bullish view.