In the last five years, BP (BP. L) has been behind its competitors in the oil and gas industry. Out of the six biggest oil majors, it is the only one whose stock is lower than it was in 2019. BP has been investing in renewable energy projects; however, the company struggled a bit due to this strategic move. It has reduced the production of oil on its own outside sources even though, on a global level, supply has continued to be an issue. Consequently, the prices hit high, but BP didn’t gain from that as much as it could.

In 2023, Saudi Arabia, along with other OPEC+ Nations, extended production cuts to maintain higher oil prices. This environment caters to the long-standing oil producers, so the renewable energy path that BP took might be a wrong one in the light of this situation’s dynamics. Oil prices that would decrease when the OPEC+ lifts supply limits can harm BP as it moves into a new business model.

Even though the share price of BP has dropped recently, it seems that it is not undervalued compared to its historical price point. Its price-to-book (P/B) ratio is in line with its average over the last ten years, and thus, the stock is not really a bargain. Investors may consider observing the course of BP’s green energy transformation along with its oil production, especially in light of market developments.

We perceive a slight gain in the stock price of BP p.l.c., being traded on the NYSE, as we analyze the stock’s performance over the most recent session. At 10:08 UTC on October 10, 2024, the stock is trading at $32.07, thus marking a 0.34% increase (+0.11). The volume of trading during this period is quite low, being 5.19K shares.

During the last few days, we’ve experienced extreme instability in BP’s share price. On October 7, the stock tumbled from $33.00 to $31.80, represented by big red candles, which are signs of huge selling pressure. Subsequently, on October 8 and 9, the stock moved into a period of consolidation, wobbling between $31.80 and $32.00.

As of today, we’re experiencing a little bit of a price surge; the rate surpassed $32.00 and was at its highest at $32.07. There also seems to be a small increase in buying activity, which might be the precursor of the breakout from the recent consolidation. Nonetheless, considering that the volume of the trade is relatively low, we are a bit reserved on whether this movement will last in the near future.

It will be necessary to remain cautious about the ability of BP to retain the said profits or if it gets back to the range in which it was moving earlier this week.

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