BP stock compared to oil prices and markets
BP (BP) stock has fallen 7% so far in the third quarter, mainly due to a fall in the price of oil. WTI, the benchmark crude oil, has fallen 11% in the current quarter. However, the market has risen. The SPDR S&P 500 ETF (SPY), which closely resembles the S&P 500 Index, has risen 5% in the third quarter.
BP stock has fallen so far in the third quarter
In July, the price of WTI crude oil fell 7%, SPY rose 3%, and BP stock neither gained nor lost. So far in August, WTI crude oil has declined 3%, SPY has increased 1%, and BP stock has fallen 6%. That implies that BP stock has moved mostly in line with oil prices in the current quarter.
Overall, oil prices have fallen 11% in the third quarter due to the rising global oil supply. OPEC and Russian oil supply rose in July. Oil prices are being impacted by higher oil inventories, a strong dollar, and concerns about oil demand. For more, please refer to Is US Crude Oil Nearing a Bear Market?
However, on July 31, BP posted better-than-expected second-quarter earnings. That could have supported the stock in the current quarter. BP also announced the start-up of its mega upstream project Shah Deniz Stage 2. For more on BP’s upstream projects pipeline, please refer to BP’s Robust Upstream Project Pipeline Is Expected to Pump Growth.