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Oil Prices Fall: BP Stock Down 7% in Current Quarter

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Aug. 21 2018, Published 1:39 p.m. ET

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.

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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.

Peer performances

ExxonMobil (XOM), Royal Dutch Shell (RDS.A), and Chevron (CVX) have fallen 4%, 8%, and 5%, respectively, in the current quarter. Total (TOT), PetroChina (PTR), and Eni (E) have fallen 1%, 2%, and 1%, respectively.

In the next part, we’ll evaluate BP’s moving averages.

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