BP share price continued with its downtrend on Wednesday, mirroring the decline in sentiment surrounding global crude oil prices. The stock was at GBX 413.50 at the time of writing, down by 1.1% during the European trading session. While BP is up by 4.8% year-to-date, it has recently met headwinds which have seen it decline by 2% in the last five sessions.
The outlook for global crude oil prices is gloomy following China’s soft manufacturing data released on Monday. The world’s second-largest economy and largest importer of crude oil reported a manufacturing PMI reading of 49.1 in January 2025 down from December 2024’s 50.1. As well as signaling reduced demand for crude oil, the reading was also the lowest in five months.
Oil prices are down by 3% in the last five trading sessions and just up by 1.7% year-to-date. That shows that BP share price (+4.8% YTD) has outperformed its primary commodity in the markets. However, a continuation of the downtrend by oil prices could drive the stock into the negative territory.
The BP share price short-term trend will likely be swayed by the company’s earnings report, scheduled for release on February 11. Median analyst focasts estimate earnings per share of $0.56, down from $0.82 for the corresponding quarter last year.
BP Share Price Prediction
The momentum on BP share price signals a likely continuation of the downside below the pivot level at GBX 417.35. That will favour the establishment of the first support at GBX 411.80. However, a stronger downward momentum will break below that level and potentially test the second support at GBX 406.35.
On the flip side, moving above GBX 417.35 will signal control by the buyers. That will likely see movement to the first resistance at GBX 422.00. The downside narrative will be invalid if the stock breaks above that level. Furthermore, such momentum could extend gains and test the second resistance at GBX 428.20.
The post BP Share Price Down As Oil Sentiment Turns Sour appeared first in UK on InvestingCube.