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Why is BP announcing the decline of oil?

17/09/2020 - 13h41

The BP Group has issued alarming forecasts for the oil market over the next 30 years. Let's find out together what this scenario is based on and what the future holds for the oil majors.

Analysis N°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.

Analysis N°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.

Analysis N°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.

Analysis N°4

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

Analysis N°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.

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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.

 

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.

 

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

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.

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76.4% 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.