BP share price have risen to five-week highs on renewed optimism around demand for crude oil following a breakthrough in trade talks between the United States and China. The stock was up by 3.3% on the daily chart to hit a high of GBX 385, staying on track to register the third successive session of gains. In addition, that upsurge saw it stay decisively on the upward trajectory after recently facing multiple rejection at GBX 370.
The United States and China agreed on Monday to slash reciprocal and retaliatory trade tariffs substantially for the next 90 days, raising hope of resuscitation of a dwindling global economy. The US agreed to cut tariffs from 145% to 30%, while China lowered its rate from 125% to 10%.
BP Takeover Rumours Add Propulsion to Stock Price
The momentum on BP stock price is not purely down to US-China trade talks. The company is currently the subject of a rumoured interest from some of its peers. Financial Times reported last week that Shell, Chevron, ExxonMobil, Adnoc Gas and TotalEnergies are weighing the possibility of acquiring BP.
While BP (LSE: BP) is yet to comment on the news, the resulting sentiment will likely keep adding propulsion to its stock price. The British oil giant has struggled to stay competitive in recent times. For the full year 2024, it reported $0.29 billion in profit, a significant drop from $15.39 billion recorded in 2023.
BP Stock Price Forecast
BP stock price pivots at GBX 381 and the momentum favours action to stay above that level. With the buyers in control, the stock will likely edge up to meet the first resistance at GBX 386. A stronger momentum will break above that level and potentially take the action higher to test GBP 390.
Alternatively, the action will shift to the downside if the price breaks below GBX 381. That will likely see the first support established at GBX 372. An extended control by the sellers will take the action lower and invalidate the upside thesis. Also, such momentum could take the price to test the second support at GBX 365.
The post BP Share Price Extends Gains on Improved Demand Outlook, Takeover Talk appeared first in UK on InvestingCube.