What will the UK election mean for the BP share price?

The oil and gas major will see increased volatility after the UK election, with a Tory victory supporting the sector, though a stronger pound will weigh on internationally-focused firms like BP.

BP shares are likely to be torn post-election, with the company seeing both benefits and drawbacks in each potential scenario, according to Senior Market Analyst at IG Josh Mahony.

A conservative-led government will likely remain relatively supportive to the oil and gas sector, keeping business taxes steady and raising confidence in the market, he said.

However, a strong pound would likely ensue, bringing potential weakness for internationally-focused firms like BP.

Conversely, the benefit of a weak pound in the scenario of a Labour-led government could be limited for companies in the sector, with Corbyn planning to specifically hit the industry alongside a wider strategy to raise business taxes across the board.

‘Ultimately, any sterling devaluation in the case of a Labour government could be short-lived given the likeliness of a second referendum, and thus a Corbyn government would likely be seen as a negative for BP,’ Mahony added.

BP is trading at 464p a share as of 11:30 GMT on Thursday.

Looking to trade BP and other oil and gas stocks? Open a live or demo account with IG.

MainFirst initiates coverage of BP with upbeat price target

Analysts at MainFirst initiated coverage of BP in December with a ‘outperform’ rating and a price target of 620p.

JP Morgan reiterated its ‘overweight’ rating for the stock and downgraded its price target for BP to 600p.

Based on BP trading at 464p the two banks believe the stock has a potential upside of between 29.3% - 33.6%.

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

Incoming BP Boss sells £8 million in shares

New BP boss Bernard Looney sold £7.8 million worth of shares prior to taking over as the oil and gas company’s new CEO, according to a recent report by This is Money.

Looney sold down his stake in the company over two sales that took place in February and April – six months before BP publicly announced his appointment, the report said.

It is common for incoming executives to buy up shares to reach the statutory minimum of a holding worth five times their salary, the report added.

‘I am humbled by the responsibility that is being entrusted to me by the Board and am truly excited about both the role and BP’s future,’ Looney said following his appointment.

‘Our company has amazing people, tremendous assets, and a set of core values that guide our actions, but most of all we have a desire to be better.’

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.

Trade on the general election result

  • Go long or short with CFDs
  • Speculate on key markets – including British indices, shares and GBP forex pairs
  • Manage your risk with our range of stops and limits

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.