Is the BP share price a buy after oil prices soar?
The UK-based oil and gas major has seen its share price climb more than 5% since the start of the new year, with the stock capable of climbing even higher, according to Goldman Sachs.
BP has seen its share price climb more than 5% since the start of the new year, with the stock trading at £5 a share as of 15:35 GMT on Tuesday.
The gains the stock has seen are largely due to a surge in oil prices, driven by rising tensions in the Middle-East.
Looking to trade BP and other oil stocks? Open a live or demo account with IG.
Goldman Sachs upgrades share price outlook for BP
Analysts at Goldman Sachs are upbeat about the stock, reiterating its ‘conviction buy’ rating and upgrading its target price to £7.50.
Based on the stock trading at £5 a share, analysts at the US-based investment bank believe that the stock has a potential upside of 50%.
BP is set to unveil its fourth quarter results on February 4.
You can go long or short BP with IG using derivatives like CFDs.
Oil prices top $70 a barrel amid rising US-Iran tensions
Oil prices broke above $70 a barrel on Monday, with the rise in the cost of crude driven by rising tensions in the Middle East following the recent US airstrike that killed Iran’s top military commander Qasem Soleimani.
If Iran do choose to retaliate it will disrupt global oil supplies and could push the price of commodity even higher, with around a fifth of global oil supplies flowing through the Strait of Hormuz, a shipping lane that runs between Oman and Iran.
However, oil prices retreated slightly on Tuesday despite rising tensions in the Middle East, with Brent Crude trading at $68.33 a barrel as of 15:35 GMT.
Analysts from Goldman Sachs and UBS poured water on the idea that oil prices will rally above the $70 benchmark, with both banks arguing that strong production from the US and Norway would help support global oil supplies and keep prices from soaring much higher.
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.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
