BP stock compared to oil prices and markets
BP (BP) stock has risen 10% in the first quarter so far, mainly due to a rise in oil prices. WTI, the benchmark crude oil, has risen 22% in the current quarter, and equity markets have also gained.
The SPDR S&P 500 ETF (SPY), which resembles the S&P 500 Index, has risen 12% in the first quarter so far.
BP stock rises in the first quarter
In January 2019, WTI rose 16%, SPY rose 8%, and BP stock rose 7%. Further, in February, WTI rose 4%, SPY rose 3%, and BP rose 3%. However, in March so far, WTI has risen 2%, SPY has been flat, and BP has neither gained nor lost. Thus, the monthly data suggest that BP stock has been affected by oil prices as well as markets in the quarter. Oil prices have risen in every month of 2019 so far.
Overall, oil prices have risen 22% in the first quarter so far. Oil prices have increased due to production cuts implemented by OPEC. The likelihood of these cuts continuing for more than six months—beyond June 2019—has also pushed prices up. US sanctions against Iran and Venezuela have further supported oil prices. The power disruption in Venezuela has also helped oil prices.
Other events that affected BP stock
On February 5, BP posted better-than-expected fourth-quarter earnings results, briefly supporting its stock. For more on BP’s earnings, read BP’s Q4 Earnings Rose across Its Segments.
In the quarter, BP announced the startup of its Angelin and Giza and Fayoum projects, further strengthening its upstream portfolio.
ExxonMobil (XOM), Royal Dutch Shell (RDS.A), and Chevron (CVX) have risen 15%, 3%, and 12%, respectively, in the current quarter. Total (TOT), PetroChina (PTR), and Eni (E) have risen 8%, 7%, and 8%, respectively, in the first quarter so far.
In the next article, we’ll evaluate BP’s moving averages.
Now, let's consider BP’s implied volatility to forecast its stock price range leading up to March 29, 2019.
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