Analysis of BP share price for trading

Which individual investor has not dreamed of one day investing in the oil market? It is now possible to do using a computer with an internet connection, due to CFDs. You can actually speculate on the movements of a trend in the shares of major petroleum companies. Here we offer you the opportunity to learn more about BP shares with information, advice and price analysis.  

Trade BP shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Latest news

BP announces sale of its petrochemicals business to Ineos

30/06/2020 - 17h46

BP is selling its global petrochemicals business to the Ineos Group for $5 billion in order to meet its $15 billion target one year ahead of schedule.

Our advice for trading BP share

Tip number 1

The results of the BP group are of course very important in the study of its share price on the stock market. These results are most often officially published on the website of this oil company, but also included in the financial news of this market. These are mainly turnover and net profit, which reflect the company's profitability.

Tip number 2

Other financial publications are important to properly analyze the BP share price, such as the dividend payment schedule, which will provide you with information on shareholder compensation. Indeed, high-dividend stocks tend to appreciate in value and their price to increase and vice versa.

Tip number 3

As the share price of oil companies is strongly influenced by the cost of raw materials and therefore more precisely of oil, you will have to closely monitor the evolution of barrel crude oil price as well as all the news and events likely to have an influence on it.

Tip number 4

Data on BP's direct exploitation of oil fields and the discovery of new fields are also important for a complete fundamental analysis.

Tip number 5

Finally, you will carry out an analysis of the competition in this sector by also monitoring the results, news and market share trends of major oil companies such as Total, Technip or Chevron.

Trade BP shares!
75% of retail investor accounts lose money when trading CFDs with this provider.

About the BP Group:

You undoubtedly know of BP, or have at least heard the name, and for a good reason. The BP group is very popular and extremely well known as it is one of the global leaders in the petroleum industry. Of course, its activity is divided among different sectors, primarily the refining and distribution of oil, but also exploration and the production of hydrocarbons.

BP is a British group that in fact attains no less than 66% of its turnover from around the world.


The major competitors of BP:

BP is the third largest oil group at present in the world as classified by the turnover. But it has a number of large, highly renowned competitors in this sector that you should know about in order to achieve a pertinent analysis of the BP share price.

Number One is this sector is currently the Dutch company, Royal Dutch Shell.

In second position lies the American ExxonMobil Group that lies just above BP in terms of turnover.

Finally, the two competitors that closely follow BP in the list of the largest oil companies worldwide are Total in France and Chevron in the United States.

It is important to closely follow the financial results and the positions of these international groups and companies to be able to discern the growth possibilities of the BP share price.


The major partners of BP:

The BP Group has also implemented certain strategic partnerships with other large companies.

  • In 2000 the Solvay Group created a partnership with the BP Group to exchange their polypropylene for the technical polymers of this company.
  • In 2009, BP announced the implementation of a new partnership with Alfa Access-Renova relating to their joint business held in equal parts in Russia in order to rapidly start production and thereby become the third largest oil and gas group in the country. 
  • In 2016, BP and Rosneft also created a joint business in Russia in the oil exploration sector.
  • Finally, the Ford Group and BP are long term partners and have developed technological solutions together for individual consumers. One of the projects resulting from this partnership is the presence of the Ford BP team in the World Rally Championship at Abu Dhabi.


Analysis of the price of BP shares:

The price of BP shares is currently quoted on the English market of the London Stock Exchange. It also integrates the calculation of the Stoxx Europe 50 Index.

Historically we can note numerous rising and falling fluctuations on the price charts of this share which is ideal for trading over short periods.

Observing the historical stock market charts of the BP share price over the last decade provides a lot of information. Firstly we note a strong volatility as the historical price of this asset has been marked by numerous micro-movements. Overall however the general trend over the last years has been slightly bearish but is growing slowly but steadily.

We do however note a strong fall recorded from April to June 2010.


Trading profitably on BP shares online using CFDs:

CFDs enable you to take position on the sale or purchase of this share price and other stock market assets in the fuel commodities sector. It is possible to take position over the short, medium or long term, and safeguard your trades with stop orders and other practical functions placed at your disposal by the brokers.


The indicators to take into account for trading in BP shares on the stock market:

If you plan to start trading on the BP share price on the stock markets you simply need to take position on the rise or fall of its price using your CFD trading platform. But to ensure that your positions are profitable it is imperative to implement a comprehensive trading strategy based on good indicators. To assist you here are the principal elements that you should integrate into your analysis of the BP share price.

The financial results of the BP Group are of course extremely important when examining the share price of this asset on the stock market. The yearly financial accounts are generally published on the website of this oil company but are also quoted on the current affairs publications of this market sector. This financial data mainly covers the annual turnover of the group and its net profit that reveal the profitability of the company.

Other financial publications are also important for correctly analysing the BP share price such as the dividend payment calendar which will provide valuable information on the shareholders remuneration. In fact, shares that offer strong dividends tend to rise in value and their prices increase and vice versa.

As the share prices of oil companies are strongly influenced by the commodities prices, in particular those of crude oil, you should closely follow the movements in the price per barrel of crude oil as well as all the current events that are susceptible to influence it.  

The data relating to the direct development of oil wells by the BP Company and the discovery of new deposits are also important for a complete fundamental analysis.

Finally, you should complete an analysis of the competition in this sector by following the financial accounts, current events and stock market movements of the larger players in the crude oil commodities sector such as Total, Technip and Chevron.     

As with all stock market shares, BP shares are highly speculative assets by nature. It is therefore important to take the technical data into account that can be extracted from the historical charts of this asset as well as market expectations.


Some advice when buying BP shares:

When buying or selling BP shares using CFDs you should of course follow the analytical advice as above but also manage your investments carefully and correctly. It is in fact primordial that you do the following:

  • Follow a strict and reasonable money management plan.
  • Place stop orders to cut any losses or take profits at the right time.
  • Use high quality signals that you can obtain from your online broker.
  • Diversify your investments in order to cover any possible losses.
  • Use the leverage effect prudently without abusing it.

You can also choose to test your investment strategies using a free demonstration account before launching definitively, this will enable you to learn and practise without risking your own capital. You then simply need to move into real trading when you feel ready.

How to trade on the price of BP shares?

To trade effectively on the BP share price, it is preferable to use an online CFD broker. There you will be able to find this asset as well as many other stock market shares.

Trade BP shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.