Comparing BP stock with oil prices and markets
In April, WTI rose 9%, SPY rose 3%, and BP stock rose 12%. In May so far, WTI has risen 7%, SPY has risen 3%, and BP stock has risen 5%, implying that BP stock has moved mostly in line with the broader market and oil.
Oil prices have risen due to supply cuts by major oil producing nations, stronger demand, and mounting tensions in the Middle East. Also, markets have been supported by US companies’ robust earnings and easing US-China trade war tensions. For more on markets and oil prices, read US Markets Rejoiced, Trade War Concerns Subsided on May 21 and What’s Pushing Oil Prices Higher?
Coming back to BP stock, on May 1, BP posted better-than-expected first-quarter earnings, which may have boosted its stock. For more on the stock, read How Did BP Fare in 1Q18?
In the second quarter, BP has announced significant upstream projects updates, which may be supporting its stock. The development of Ghazeer, the second phase of mega field Khazzan in Oman, has been approved. Also, BP committed to developing the Alligin and Vorlich fields in the North Sea, and it formed a strategic alliance with Petrobras for mutual growth inside and outside Brazil. BP and its partner have also sanctioned the second phase of the integrated KG D6 block in India.