BP share price has been on a strong rally in the past week as oil prices climb. The stock has jumped by 3% in the past week and more than 29% in the past six months. At the time of writing, BP stock price was trading 0.83% higher at 484p.
Crude Oil Prices
In the past months, crude oil prices have been plunging amid a slowdown in demand from China. Being the largest consumer in the world, and the largest importer of crude oil, China’s covid-19 curbs, have slowed down demand for the product.
However, oil prices have been on the rise in the last couple of days amid hopes that China will ease some of its Covid-19 curbs after no related deaths have been reported. China’s crude oil imports from Russia were up by 17% year on year in November.
Oil prices rose by more than $2 a barrel earlier on Wednesday buoyed by a weak US dollar and a US plan to restock petroleum reserves. At the time of writing, Brent crude oil was up by 1.67% trading at $83.58 per barrel while US West Texas Intermediate Crude Oil (WTI) rose 1.79% at $79.60 per barrel.
Despite the bullish outlook in oil prices, a worsening stance for a major US winter storm has sparked fears of flight delays and impassable roads during the festive season. This will potentially curtail oil demand in the storm-hit areas.
BP Share Price Outlook
The daily chart shows that the BP share price has been on a strong upward trajectory in the past few days. It has managed to move above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is below neutral at 46.
Therefore, the BP share price is likely to continue climbing in the long term as bulls target this year’s multi-month high at 505p. However, a flip below the important support at 456p will invalidate this view.