- BP shares exhibited impressive bullishness in 2022.
- Crude oil prices have declined sharply lately.
- The company shut its Ohio refinery plant this week following a fire.
BP’s share price dropped on Friday as market players responded to the current crude oil price dip and the Ohio fire. The stock plummeted to the 443.70p lows, slightly beneath the 470p YDT peak.
Challenging Week for BP
BP is a renowned gas and oil company operating in several countries globally. Meanwhile, the firm suffered distress (this week) following an explosion at its Toledo, Ohio refinery. The fire killed two workers, leading to the plant’s shutdown.
BP confirmed its ongoing investigation about the cause of the incident, reiterating support for the succumbed employees. The burnt arm could process around 160K oil barrels per day. Meanwhile, the fire came weeks after the company revealed plans to sell half of the plant to Cenovus – a deal worth $300 million.
Thus, BP will endure investigations from authorities who have attacked the firm for its safety. Besides the repair charges, BP will likely suffer a massive fine from the United States regulators. Remember, the company has had a challenging performance in America.
The Gulf of Mexico explosion of 2010 killed eleven individuals. That came after the Texas fire that killed 15 workers some few years prior. Moreover, BP shut down its Indiana refinery due to an electrical explosion.
Also, the shares retrace because of the plunging oil prices. The global benchmark, Brent, witnessed its price sliding to $88, whereas WTI (West Texas Intermediate) plunged to $80.
The plunge surfaces as the United States dollar continued its surges amidst escalated recession fears. Remember, a strong United States dollar might be advantageous for energy firms that report in the sterling, including BP and Shell.
BP Share Price Prediction
The daily chart indicates that BP stock exhibited a massive bullish bias over the last few months. Meanwhile, the bullish run diminished as BP met a massive resistance near 469p. It created a double-top formation that had a neckline at 360p.
The shares moved briefly under the 25d moving average. Moreover, the Relative Strength Index sank. Thus, the stock may keep plunging in the upcoming days. That would expose the support level at 400p.