Top oil executives reckon with downturn even as Trump cheers them on By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2025
0mins
Source: Investing.com
Energy Industry Challenges: The energy sector is facing significant challenges with falling oil prices leading to job cuts and reduced investments, despite a pro-fossil fuel U.S. administration encouraging increased production.
Market Dynamics and Future Outlook: Global oil demand growth has stagnated, particularly due to factors like China's electric vehicle adoption, while U.S. producers are prioritizing capital discipline over expansion, indicating a cautious approach amidst rising costs and market uncertainties.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 38.550
Low
6.38
Averages
84.26
High
503.69
Current: 38.550
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. The Company's segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. Its gas business includes regions with upstream activities that produce natural gas, integrated gas and power, and gas trading. Its low carbon business includes solar, offshore and onshore wind, hydrogen and carbon capture and storage and power trading. Oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. Customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle charging, as well as Castrol, aviation and business to business and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. Other businesses & corporate segment comprises technology and bp ventures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BP's Sale of Castrol Stake and Profitability Questions
- Castrol Stake Sale: BP's plan to sell a 65% stake in Castrol could generate significant cash inflow and optimize asset allocation, thereby enhancing its competitive position in the lubricants market.
- Dividend Declaration: BP has declared a quarterly dividend of $0.4992 per ADS, although share buybacks for 2026 have been suspended, indicating a more cautious approach to capital allocation in light of future uncertainties.
- Earnings Beat: BP exceeded top-line estimates in Q4, demonstrating resilience in the oil and gas market while laying a positive foundation for Q1 and FY26 outlook, which may attract more investor interest.
- Future Outlook: By divesting its Castrol stake, BP not only improves its financial standing but also potentially funds investments in renewable energy, reflecting strategic adjustments during its transformation process.
See More
Analysis of DFIV Stock's 52-Week High and Low Points
- Price Range Analysis: DFIV's 52-week low is $34.28 and high is $55.9666, with the latest trade at $55.64, indicating the stock is trading near its high, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average provides investors with deeper insights into price trends and potential buying opportunities, enhancing their trading strategies.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in outstanding shares for ETFs highlights significant inflows (new units created) or outflows (old units destroyed), directly affecting the buying and selling strategies of the underlying assets held within the ETFs.
See More
Significant Rotation Trends in the 2026 Stock Market
- Ford's Positive Outlook: Ford expects its tariff burden to decrease to $1 billion in 2026 from $2 billion in 2025, with a sustainable dividend yield of 4.4% and a payout ratio of 52%, which should continue to attract investor interest.
- Suncor's Strong Performance: Suncor slightly beat EPS and revenue expectations in its Q4 2025 report, prompting RBC Capital to raise its price target from $69 to $75, indicating over 35% potential upside, although short-term pullback risks remain.
- Macy's Positive Technical Signals: Following a surprising earnings beat in Q3 2025, Macy's stock has shown signs of upward momentum despite dipping below the 50-day SMA, with both RSI and MACD indicating a potential resumption of the uptrend.
- BP's Technical Support: Despite a more than 5% drop following stock buyback news, BP's shares have stabilized around the 50-day SMA, with RSI and MACD indicators suggesting technical support, positioning the stock to potentially overcome the negative impact of mixed earnings results.
See More
Compass to Change Share Trading Currency to USD
- Currency Change Announcement: Compass has announced that starting April 1, 2024, it will change its share trading currency from GBP to USD, aiming to reduce foreign exchange volatility and simplify the investment case for global investors, which is expected to enhance its appeal in international markets.
- Revenue Source Insight: With approximately 75% of Compass's revenue denominated in dollars, this currency shift will align its financial reporting with market performance, thereby boosting investor confidence and potentially attracting more international investments.
- Market Reaction: Despite Compass's commitment to continue paying dividends in GBP, concerns about its potential migration to the New York Stock Exchange have intensified, reflecting a decline in investor confidence in the UK market, which could impact its stock price performance.
- Industry Trend: This decision by Compass mirrors actions taken by other large multinationals like InterContinental Hotels Group, indicating a growing trend among UK companies to adopt USD as their trading currency to better align with global competitors.
See More
Energy Stocks Decline, NYSE Energy Sector Index Falls 0.5%
- Market Weakness: On Tuesday afternoon, energy stocks broadly declined, with the NYSE Energy Sector Index falling by 0.5%, indicating market concerns over energy demand prospects, which could undermine investor confidence and lead to capital outflows.
- Sector Impact: The drop in energy stocks may negatively affect the share prices of related companies, particularly amid increasing uncertainty regarding global economic recovery, prompting investors to reassess their portfolios.
- Investor Sentiment: As energy prices become more volatile, market expectations for future energy demand are becoming more cautious, potentially leading to short-term capital shifts towards more stable sectors, thereby affecting the financing capabilities of energy companies.
- Strategic Reevaluation: Given the poor performance of energy stocks, related companies may need to reassess their strategic direction to adapt to market changes and maintain competitiveness, especially in the context of growing emphasis on renewable energy.
See More
Analysis of Significant Stock Movements Among Companies
- Amentum Holdings Decline: Amentum Holdings' stock fell approximately 12% after fiscal Q1 revenue and adjusted EBITDA missed Wall Street analysts' consensus estimates, indicating market concerns over its financial performance and potential future financing capabilities.
- BP Suspends Buyback: BP Plc suspended its stock buyback program to strengthen its balance sheet, resulting in a 6% drop in its ADRs in the U.S., reflecting the company's cautious approach amid market volatility.
- ZoomInfo Downgrade: ZoomInfo Technologies forecasted first-quarter earnings per share between 25 to 27 cents, below analysts' expectations of 27 cents, leading to a 10% decline in its stock price, which may affect market confidence and investor sentiment.
- Ichor Holdings Surge: Ichor Holdings' shares soared 37% to a 52-week high due to strong demand driving a fourth-quarter earnings beat, highlighting the recovery potential in the semiconductor equipment market.
See More
BP's Sale of Castrol Stake and Profitability Questions
- Castrol Stake Sale: BP's plan to sell a 65% stake in Castrol could generate significant cash inflow and optimize asset allocation, thereby enhancing its competitive position in the lubricants market.
- Dividend Declaration: BP has declared a quarterly dividend of $0.4992 per ADS, although share buybacks for 2026 have been suspended, indicating a more cautious approach to capital allocation in light of future uncertainties.
- Earnings Beat: BP exceeded top-line estimates in Q4, demonstrating resilience in the oil and gas market while laying a positive foundation for Q1 and FY26 outlook, which may attract more investor interest.
- Future Outlook: By divesting its Castrol stake, BP not only improves its financial standing but also potentially funds investments in renewable energy, reflecting strategic adjustments during its transformation process.
See More
Analysis of DFIV Stock's 52-Week High and Low Points
- Price Range Analysis: DFIV's 52-week low is $34.28 and high is $55.9666, with the latest trade at $55.64, indicating the stock is trading near its high, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average provides investors with deeper insights into price trends and potential buying opportunities, enhancing their trading strategies.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in outstanding shares for ETFs highlights significant inflows (new units created) or outflows (old units destroyed), directly affecting the buying and selling strategies of the underlying assets held within the ETFs.
See More
Significant Rotation Trends in the 2026 Stock Market
- Ford's Positive Outlook: Ford expects its tariff burden to decrease to $1 billion in 2026 from $2 billion in 2025, with a sustainable dividend yield of 4.4% and a payout ratio of 52%, which should continue to attract investor interest.
- Suncor's Strong Performance: Suncor slightly beat EPS and revenue expectations in its Q4 2025 report, prompting RBC Capital to raise its price target from $69 to $75, indicating over 35% potential upside, although short-term pullback risks remain.
- Macy's Positive Technical Signals: Following a surprising earnings beat in Q3 2025, Macy's stock has shown signs of upward momentum despite dipping below the 50-day SMA, with both RSI and MACD indicating a potential resumption of the uptrend.
- BP's Technical Support: Despite a more than 5% drop following stock buyback news, BP's shares have stabilized around the 50-day SMA, with RSI and MACD indicators suggesting technical support, positioning the stock to potentially overcome the negative impact of mixed earnings results.
See More
Compass to Change Share Trading Currency to USD
- Currency Change Announcement: Compass has announced that starting April 1, 2024, it will change its share trading currency from GBP to USD, aiming to reduce foreign exchange volatility and simplify the investment case for global investors, which is expected to enhance its appeal in international markets.
- Revenue Source Insight: With approximately 75% of Compass's revenue denominated in dollars, this currency shift will align its financial reporting with market performance, thereby boosting investor confidence and potentially attracting more international investments.
- Market Reaction: Despite Compass's commitment to continue paying dividends in GBP, concerns about its potential migration to the New York Stock Exchange have intensified, reflecting a decline in investor confidence in the UK market, which could impact its stock price performance.
- Industry Trend: This decision by Compass mirrors actions taken by other large multinationals like InterContinental Hotels Group, indicating a growing trend among UK companies to adopt USD as their trading currency to better align with global competitors.
See More
Energy Stocks Decline, NYSE Energy Sector Index Falls 0.5%
- Market Weakness: On Tuesday afternoon, energy stocks broadly declined, with the NYSE Energy Sector Index falling by 0.5%, indicating market concerns over energy demand prospects, which could undermine investor confidence and lead to capital outflows.
- Sector Impact: The drop in energy stocks may negatively affect the share prices of related companies, particularly amid increasing uncertainty regarding global economic recovery, prompting investors to reassess their portfolios.
- Investor Sentiment: As energy prices become more volatile, market expectations for future energy demand are becoming more cautious, potentially leading to short-term capital shifts towards more stable sectors, thereby affecting the financing capabilities of energy companies.
- Strategic Reevaluation: Given the poor performance of energy stocks, related companies may need to reassess their strategic direction to adapt to market changes and maintain competitiveness, especially in the context of growing emphasis on renewable energy.
See More
Analysis of Significant Stock Movements Among Companies
- Amentum Holdings Decline: Amentum Holdings' stock fell approximately 12% after fiscal Q1 revenue and adjusted EBITDA missed Wall Street analysts' consensus estimates, indicating market concerns over its financial performance and potential future financing capabilities.
- BP Suspends Buyback: BP Plc suspended its stock buyback program to strengthen its balance sheet, resulting in a 6% drop in its ADRs in the U.S., reflecting the company's cautious approach amid market volatility.
- ZoomInfo Downgrade: ZoomInfo Technologies forecasted first-quarter earnings per share between 25 to 27 cents, below analysts' expectations of 27 cents, leading to a 10% decline in its stock price, which may affect market confidence and investor sentiment.
- Ichor Holdings Surge: Ichor Holdings' shares soared 37% to a 52-week high due to strong demand driving a fourth-quarter earnings beat, highlighting the recovery potential in the semiconductor equipment market.
See More
