BP share price plunged more than 5% on Tuesday despite publishing bumper profits for the first quarter. At press time, the BP stock price was trading 5.28% lower at 506.6p. BP has a total market cap of 93.8 billion pounds.
BP is Dipping
BP share price was among the worst performers in the UK’s benchmark FTSE 100 index on Tuesday, despite reporting better-than-expected profits for the March quarter. The British oil giant reported a jump in its first-quarter profits, up from the previous quarter but below record levels recorded through a blockbuster 2022.
Oil major BP said on Tuesday that its underlying profits climbed to $5 billion in the three months ending March 31, beating analysts forecast of $4.3 billion. This was its second-best result for the first quarter since 2012. That is compared to the $4.8 billion profit recorded in the fourth quarter of 2022 and the $6.2 billion in the first quarter.
According to the energy company, the results were buoyed by reduced refining costs and exceptional oil and gas trading in the quarter. BP also announced a further share buyback of $1.75 billion to be completed in the next three months, down from $2.75 billion announced in the first quarter. The drop put pressure on BP’s shares, offsetting the stronger-than-expected profits.
Oil prices were also in the red on Tuesday as the focus shifts to the Fed’s two-day policy meeting set to end on Wednesday. At the time of writing, Brent crude futures were down 0.43% at $78.96 per barrel, while US West Texas Intermediate (WTI) crude futures dropped by 0.50% to $75.26 per barrel.
BP Share Price Forecast
The daily chart shows that the BP share price has been under intense pressure for the past few days, falling more than 5% in the past week amid uncertainty over oil and gas prices. The energy stock has moved below the 25-day and 50-day moving averages, while its Relative Strength Index (RSI) continues to move lower.
Therefore, the BP share price is likely to continue falling in the short term, giving the bears a chance to hit the next logical support level at 473p. However, a move past the 50-day MA at 531.5p will invalidate the bearish thesis.