BP p.l.c. engages in the energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. Bristish Petroleum stock forecast: the Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing.
British Petroleum is obviously highly correlated with Light Crude Oil and Brent Oil, if Oil is dropping strongly as it’s been doing for several months, British Petroleum and most oil related stocks will experience short sell offs since their production costs are being the same but the oil barrel is being sold for much less dollars.
The collapse in crude oil prices has brought into relief the correlation between oil majors’ financial leverage and the valuation of their shares. It’s a relationship that looks like particularly bad news for the bigger European oil producer firms.
Let’s take a look at British Petroleum weekly timeframe analysis below. You can see a couple of weekly imbalances, the latter around $35.90 per share is being formed and looks pretty strong. We can see how a similar imbalances a little bit higher around $38.98 is playing out nicely.
As supply and demand traders, we should not care much if Oil plunges after fails to reach a deal, or the existing oil wars and fights existing between Opec, Russia, Arab countries and the US. Oil is trading lower after Saudi Arabia slashed crude oil prices, but if we take a look at British Petroleum weekly timeframe we will see that it was the most likely direction the oil related stock could move since we had weekly supply in control and a clear downtrend and bearish bias.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.