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Oil Prices Boost BP Stock by 18%


May. 24 2018, Published 1:54 p.m. ET

Comparing BP stock with oil prices and markets

BP (BP) stock has risen 18% in the second quarter, primarily led by surging oil prices and markets. Meanwhile, WTI has risen 14%, and the SPDR S&P 500 ETF (SPY) has risen 6%.

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?

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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.

Peers’ performance

ExxonMobil (XOM), Royal Dutch Shell (RDS.A), and Chevron (CVX) have risen 11%, 16%, and 14%, respectively, in the second quarter, while Total (TOT), Suncor Energy (SU), and Petrobras (PBR) have risen 11%, 22%, and 14%. In the next part, we’ll evaluate BP’s moving averages.


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