BP stock, oil prices, and markets
So far, BP (BP) stock has fallen 5.4% in the second quarter due to a fall in oil prices. WTI, the benchmark crude oil, has fallen 3.7% in the second quarter. Equity markets have fallen marginally. The SPDR S&P 500 ETF (SPY), the market indicator, has fallen 0.1% in the second quarter.
BP stock has fallen
In April, WTI rose 6.3%, SPY rose 4.1%, and BP stock rose 0.1%. So far in May, WTI has fallen 9.4%, SPY has fallen 4.0%, and BP stock has fallen 5.5%. The month-wise data suggest that BP stock has been impacted by oil prices and markets in the second quarter. So far, oil prices have been volatile in the second quarter.
Overall, oil prices have fallen 3.7% in the second quarter. Oil prices have decreased due to escalating tension from the US-China trade war. Investors are concerned about how the trade tension could impact global economic growth and oil demand in 2019. The rise in oil inventories in the United States has dented oil prices.
Other events that impact BP stock
On April 30, BP posted better-than-expected first-quarter earnings, which briefly supported the stock. For more on BP’s earnings, read BP’s Q1 Earnings Results Surpass Analysts’ Estimates.
In the second quarter, BP announced the sanction of the $6 billion Azeri Central East project offshore Azerbaijan. The project could produce 100 Mbpd (thousand barrels per day) by 2023. BP approved Phase 2 of the Thunder Horse South Expansion. The project is expected to add 50 Mbpd by 2021. The projects strengthened BP’s upstream portfolio.