The BP share price is holding onto the key resistance level at 300p by a whisker. At the time of writing, the BP stock was trading slightly higher at 300.85p. BP plc is a British multinational oil and gas company. It is one of the world’s seven oil and gas supermajors.
The resurgence of coronavirus infections, tied to the highly contagious Delta variant, dampened the global oil demand. China, the second-largest oil consumer in the world, after the US, reimposed strict lockdown restrictions, thus dampening demand.
However, oil prices have rebounded ever since, albeit at a slower pace. Oil prices were hovering over the crucial level at $70 on Friday. US West Texas Intermediate (WTI) crude was trading higher at $70.19 per barrel. Brent crude advanced to $73.47 per barrel.
Global demand rose as the slow recovery from the US Gulf Coast export and refining hub from the hurricane look set to deplete stocks further. About 1.7 million barrels per day of oil production remain shut in the US Gulf Mexico as the extensive damages by Hurricane Ida slows down the return of crews to offshore platforms.
According to the OPEC+ meeting held on Wednesday; the group decided to increase production by 400,000 barrels per day.
According to analysts, despite the recovery of oil prices, the BP share price is still not out of the woods yet. Uncertainty over the pandemic remains a major challenge for energy companies like BP.
BP Share Price Forecast
The daily chart indicates that the BP share price has been on a choppy road for the past two months. The stock is trading nearly 12% below its highest point this year.
It is trading slightly above the 25-day EMA and slightly below the 50-day EMA. It is also trading above the 50-day moving average.
Therefore, the bulls need to gain momentum to push the price to the next resistance level at 312.60p. if this happens, the next target will be this year’s high at 337.45p. Nonetheless, a move below the support at 287.45 will invalidate this view.