Coronavirus crash: how low can the BP and Tullow Oil share prices go?

Last week, the two oil and gas companies saw their shares take a significant tumble, with the coronavirus bringing about a major sell-off in global equities and, with a wider decline in oil prices the pair could fall further.

Over the last seven trading sessions, BP and Tullow Oil have seen their shares fall by 5% and 9% respectively, with the pair succumbing to investor panic derived from the COVID-19 outbreak that brought about major sell-off in global equities last week.

This week, the pair have seen their stocks claw back some of their losses, but with oil prices in decline, with Brent crude trading at $52 a barrel after falling to $49 last week, down 16%, investors will likely take a bearish view towards BP and Tullow Oil that could see their share prices fall further.

BP and Tullow Oil closed at 414p and 32p respectively on Tuesday.

BP: technical analysis

BP shares hit the lowest level since mid-2017 last week, with the wider decline in oil prices hurting the stock, according to Joshua Mahony, senior market analyst at IG.

That decline took price through a confluence of trendline and horizontal support around £4.52. That level also provided the completion of a bearish double top formation following a three-year rally that saw the stock gain 121% since the February 2016 low.

While price is on the rise this week, we are likely seeing a retracement of the recent decline, with further downside expected before long. With that in mind, a bearish outlook is in play despite the current bounce, with a rise through £4.81 required to negate this view.

Looking to trade BP and Tullow Oil? Open a live or demo account with IG today.

Tullow Oil: technical analysis

Tullow Oil declines have been consistent since the mid-November breakdown, with the stock hitting fresh lows last week, Mahony said.

‘There is little reason to expect the tide to turn given the lack of any bullish signals,’ he added. ‘As such, a bearish outlook remains in play, with trendline resistance likely to continue depressing price for the foreseeable future.’

You can go long or short BP and Tullow Oil with IG using derivatives like CFDs.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.