BP share price rose for the second successive session on Thursday on the day the company announced plans to reduce its workforce by nearly 8,000 people. The stock was up by 1% and traded at GBX 427.55 at the time of writing. The company’s stock is enjoying an upbeat momentum as crude oil prices are trading near five-month highs.
Global crude oil prices have risen by about 12% in the last month, roughly the same margin with which BP share price has risen. However, news of cost-cutting measures by the oil giant has given its stock fresh impetus that will likely keep it on the ascending trajectory in the near-term.
BP will lay off a total 7,700 workers, consisting of 4,700 direct workforce and 3,000 of its contracted workers. That figure consists of just 5% of the company’s total workforce, but investors will appreciate it as significant in its effort to turn around its performance after falling behind rivals. BP is currently worth just about 40% of long-time peer, Shell PLC.
On the downside, news of a ceasefire deal between Israel and Hamas could put pressure on oil prices and likely subdue BP share price. The two warring sides reached a deal on Tuesday, raising hope that peace could return to the oil-producing Middle East. Benchmark Brent crude oil price was down by 1.1% while West Texas Intermediate (WTI) was at -1.8% at the time of writing.
BP Share Price Prediction
The momentum on BP share price favours the upside if action stays above GBX 431. Immediate resistance will likely be at GBX 430. However a continued control by the buyers will break above that level and potentially test the second resistance at GBX 435.
Conversely, the momentum will shift to the downside if the price breaks below the pivot. That will likely see the stock move lower to find the first support at GBX 424. Also, breaking below that level will invalidate the upside narrative. Also, the resulting momentum could extend the decline and test GBX 421.
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