The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
BP (Q1 earnings 2 May)
Quarterly figures are expected to show healthy improvement at BP, with revenue expected to rise 34% and earnings per share to more than double. In comparison to last year, the oil price is solidly higher, and with OPEC hinting at more cuts the risk of another slump in oil prices appears reduced. Refining margins have remained resilient, and coupled with higher oil prices have meant that the outlook is relatively stable. In the longer term, oil prices need to move firmly back above $50, and higher, to really create a bullish environment for the shares, but BP appears to have weathered the storm.
Since the beginning of the year, the shares have fallen sharply from the $5.20 high. They have found some support at 440p, but will need to break above 460p to break the downtrend from the 2017 high. Below 440p, 432p and then 406p come into view as support.