BP’s share price reached an 18-week high on Wednesday, buoyed by a combination of impressive earnings and a renewed focus on fossil fuels. Following the announcement of its largest oil deposit discovery in 25 years, investor confidence surged. The discovery was made in the Bumerangue field off the Brazilian coast, marking a pivotal moment for the company as it shifts its investments back towards oil and gas after previous setbacks in the green energy sector.
This marks the first instance in a month where BP’s share price has seen gains for three consecutive sessions, reflecting a robust bullish sentiment among investors. The stock soared to a high of 428 pence per share as excitement over BP’s growth prospects mounted.
The company’s quarterly earnings report, released on Tuesday, provided further momentum. BP reported a net profit of $2.35 billion for Q2 2025, surpassing analysts’ expectations of $1.8 billion. In addition, BP announced a $750 million share buyback program and a dividend of 8.22 cents, reinforcing its positive outlook.
Strategic Shift and Cost-Cutting Measures
BP’s strategic reset is beginning to yield results. Under new leadership, the company is implementing a significant cost-cutting initiative aimed at saving up to $4 billion annually through 2027. This newfound discipline has attracted investor interest and is seen as a crucial factor in the recent rise in share price.
Investor sentiment remains optimistic as BP’s stock heads towards potential resistance levels. Analysts suggest that if the share price moves above 422.45 pence, it may encounter primary resistance at 428.85 pence. Should the bullish momentum continue, the stock could test further resistance at 431.85 pence.
Conversely, if BP’s share price falls below 422.45 pence, it may indicate a shift towards a downward trend. In such a scenario, the company could find initial support at 417.40 pence. A breach of this level could invalidate the current bullish narrative and lead to further declines, potentially testing 412.05 pence.
As BP navigates its transition back to fossil fuels, the combination of strategic investments and financial performance is likely to keep investor attention focused on the company’s next moves. With the oil market remaining dynamic, BP’s ability to leverage its recent discoveries will be critical in sustaining its upward momentum in the coming months.
