Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

BP and Shell rebound after oil prices rise

Both oil and gas majors have seen their shares rally in reaction to oil prices stabilising after weeks of decline, with investors likely to view BP and Shell as good long-term holds.

Oil prices have finally found a bid today, with traders reacting to the Trump claims that he could bring Russia and Saudi Arabia around the table in a bid to ease the current oversupply situation.

The possibility of such a breakthrough has always provided the possibility of a spike in energy prices, yet for the moment it is a case of relying on the word of the US president.

With subsequent commentary from Russia signalling that no such talks are planned for the coming days, we are seeing oil prices move lower somewhat. However, the sharp rise seen in oil producers today does highlight the likely outperformance in the sector once we do see prices start to rise.

Interestingly, even though oil prices are being hit by a double whammy of rock bottom demand and sky-high output, many investors are going to be bullish around these levels given the long-term upside potential.

Oil will remain in demand in the years ahead, and thus the current predicament the likes of BP and Shell find themselves in is likely to be a short-term issue rather than something which could see them go bust.

BP: technical analysis

BP shares have broken through an inverse head and shoulders neckline, with the break through £3.49 providing the highest level for this stock since the 9 March gap lower, according to Josh Mahony, senior market analyst at IG.

With oil prices falling back, there is a chance we could see further short-term downside. However, we would need to see a break below £2.49 to bring about a more bearish outlook.

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

Royal Dutch Shell: technical analysis

‘Shell shares have similarly rebounded today alongside oil prices. A bearish phase could come into play over the short-term if we see further downside in crude,’ Mahony said.

‘However, we will need to see a break below the £13.94 level to bring about a renewed bearish outlook. Until then, further upside could come into play if Russia and Saudi do come back to the table to resolve the current deadlock’ he added.

You can go long or short BP and Shell with IG using derivatives likes CFDs and spread bets.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

React to volatility on commodity markets

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

See opportunity on a commodity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform

See opportunity on a commodity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

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