BP stock price inched up on Friday, defying concerns over an upcoming OPEC+ meeting that could result in increased output. The uptick was fueled by the company’s appointment of former Devon Energy CEO, David Hager as a non-executive director. The appointment is seen as evidence of the company’s shift from renewable energy investments to its traditional oil and gas business.
Another key development in the company’s fundamentals is news of a breakthrough in its Mento Field project. BP Trinidad and EOG Resources Trinidad (EOG) announced a discovery in its first gas well on Friday, paving the way to proceed and drill the other seven wells. The 50/50 joint venture between the two companies estimates to pump 250,000 barrels of oil equivalent per day.
On the other hand, the momentum created by rumoured takeover bid by rivals such as Shell, Chevron and ExxonMobil has since dissipated, denying the stock the headwinds that propelled it to 386p mid this month. However, the bigger pressure on BP stock price is the spike in its net debt last quarter.
Also, employee share plans have continued to dilute the stock despite the existence of a $1.75 billion buyback program. The company’s 18,000 employees across 46 nations are currently enrolled in the share plans, which include Share Value Plan and Reinvent BP Plan. In the near-term, however, the reemergence of trade tariff fears have brought downward pressure on oil prices, and will likely subdue BP stock price upside next week.
BP Stock Price Prediction
The momentum on BP stock price calls for further upside above the pivot price at 357p and the momentum favours the buyers to stay in control above that level. Immediate resistance will likely come at 362p. However, an extended control by the buyers will clear that barrier and potentially test 366p.
Alternatively, breaking below 357p will usher sellers to take control, with initial support likely to come at 351p. A stronger momentum will break below that level and invalidate the upside narrative. In addition, it potentially send the action lower to test 346p in extension.
The post BP Stock Price Defies Market Jitters to Inch Up Amid New Gas Find appeared first in UK on InvestingCube.