BP share price has surged 15% from its August lows, which can be attributed to the soaring oil prices. However, the price is struggling to break above the 550p key psychological level. At press time, the shares of the British oil and gas company showed minor gains from yesterday’s closing.
On Thursday, oil prices showed a positive price action in the Asian session. Due to this, BP’s share price surged to its highest level since April. However, LON: BP tumbled as oil prices suffered a correction. On Thursday, Brent Crude Oil fell 0.53% as traders started locking in profits.
On Tuesday, BP initiated the construction of the Peacock Solar project in Texas. The project has a capacity of 187 megawatts, which will be supplied to Gulf Coast Growth Ventures. The construction phase of the project will be managed by Lightsource and is expected to bring in around 300 jobs.
In other news, BP and Harmony Energy Income Trust recently announced their partnership, which will involve physical power trading and optimization for the Hawthorn Pit and Wormald Green projects. These projects will be completed by 2024 and are expected to provide 80 megawatts and 160 megawatts, respectively.
The biggest factor affecting LON: BP will be the oil prices in the coming days. If the oil gains strength above the $97-$99 level, then shares for the energy giant can rally toward new yearly highs in the coming weeks.
The BP share price forecast will turn bearish provided the price fails to break above the 550p key psychological level. In this case, a retest of the 528p level will be on the cards. However, the outlook will flip bullish if the price breaks above 550p and holds.
This post was last modified on Sep 28, 2023, 16:12 BST 16:12