BP Stock Price and News: Oil slips ahead of Biden inauguration, but there is room to rise
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UNLOCK OFFER- LON: BP has slipped below 300 pence at the beginning of the week.
- President-elect Joe Biden's inauguration raises fears about oil-unfriendly policies.
- The focus on the pandemic may provide relief for petrol shares.
Will President-elect Joe Biden's green policies put oil stocks in the red? That is the fear of those investing in the world's "supermajors" such as BP PLC (LON: BP). Shares of the British giant are down by over 1% on Monday ahead of Biden's inauguration on Wednesday.
The new occupant of the White House is set to recommit the US to the Paris climate accord on his first day in office – but that may already be priced into BP's shares. However, investors were somewhat surprised to hear that the incoming administration may cancel the Keystone XL pipeline project. The Canadian dollar reacted with a downfall in response.
Will Biden hurt BP? Not so fast. First, American oil companies such as Exxon are under greater scrutiny than those outside the US. Expensive and dirty shale oil at home is more exposed to Uncle Sam than oil drilling abroad.
Another reason to expect a smoother transition to the Biden era is the pandemic. The new president is focused on ramping up the vaccination campaign and providing economic assistance. Last week, Biden presented a $1.9 trillion stimulus package which would be hard to pass in Congress given Democrats' slim majorities. The White House will likely focus on relief before reform.
BP stock forecast
Despite the recent slide, LON: BP shares are trading well above the late December levels of around 260. As long as they remain close to 300, there is room for recovery. Moreover, Biden's economic stimulus is a boon to oil prices.
- LON: BP has slipped below 300 pence at the beginning of the week.
- President-elect Joe Biden's inauguration raises fears about oil-unfriendly policies.
- The focus on the pandemic may provide relief for petrol shares.
Will President-elect Joe Biden's green policies put oil stocks in the red? That is the fear of those investing in the world's "supermajors" such as BP PLC (LON: BP). Shares of the British giant are down by over 1% on Monday ahead of Biden's inauguration on Wednesday.
The new occupant of the White House is set to recommit the US to the Paris climate accord on his first day in office – but that may already be priced into BP's shares. However, investors were somewhat surprised to hear that the incoming administration may cancel the Keystone XL pipeline project. The Canadian dollar reacted with a downfall in response.
Will Biden hurt BP? Not so fast. First, American oil companies such as Exxon are under greater scrutiny than those outside the US. Expensive and dirty shale oil at home is more exposed to Uncle Sam than oil drilling abroad.
Another reason to expect a smoother transition to the Biden era is the pandemic. The new president is focused on ramping up the vaccination campaign and providing economic assistance. Last week, Biden presented a $1.9 trillion stimulus package which would be hard to pass in Congress given Democrats' slim majorities. The White House will likely focus on relief before reform.
BP stock forecast
Despite the recent slide, LON: BP shares are trading well above the late December levels of around 260. As long as they remain close to 300, there is room for recovery. Moreover, Biden's economic stimulus is a boon to oil prices.
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