BP Shares Forecasted To Rise In Long-Term
Last week saw a steady decline in the price of BP shares from a high of 48.57 on Monday to a low of 47.67 on Friday before closing the week at 47.85.
BP shares took a fairly big hit on Thursday after an explosion at a BP oil-refinery in north-western Indiana. However, the company has since stated that operations at the refinery were minimally impacted and that production is continuing as usual. As a result the share price is expected to recover from the losses it suffered at the end of last week.
Furthermore, the past year has seen BP shares rise steadily in price, they hit a high of 53.38 in July and many analysts believe that they will return to this level, and even higher, in the not too distant future. This is because the company has had an increase in net income, a good valuation level, solid cash flow from operations and is overall in a good financial situation with reasonable debt levels.
BP shares have been hit in recent months due to the company’s 20% ownership of Rosneft (Russia’s leading petrol company). As a result, it is hard to know which direction the shares will take in the short term until the Russian – Ukrainian conflict dies down.