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Has BP Stock Risen ahead of Its Q1 Earnings Release?

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Apr. 16 2019, Published 10:14 a.m. ET

BP’s returns

BP’s (BP) earnings are expected to fall in the first quarter driven by lower upstream and weaker downstream earnings. Let’s review BP stock’s performance ahead of its first-quarter earnings release.

Since March 12, 2019, BP stock has risen. Let’s compare its returns to those of the SPDR S&P 500 ETF (SPY), the broader market indicator, and Brent, the benchmark oil.

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BP stock, oil, and markets in the past month

BP stock is influenced by changes in oil prices and equity markets. Oil prices and markets have been on an uptrend in the past month.

Since March 12, Brent has risen 7.3%. The rise in oil prices was the result of the implementation of production cuts by OPEC. The expectation of the cuts extending into the second half of 2019 is also supporting oil prices. Sanctions against Iran and Venezuela have also helped oil prices.

The US equity market has followed a similar trend in the past month. SPY has risen 3.8% since March 12 led by expectations of no interest rate hikes in the current year and optimism about US-China trade talks.

It’s no surprise that BP stock has followed a similar trend. It’s risen 5.2% since March 12, outperforming SPY in the period.

BP’s peers Equinor (EQNR), PetroChina (PTR), and YPF (YPF) have risen 4.9%, 1.1%, and 7.0%, respectively, in the past month.

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