How to buy BP shares?
BP is a large oil company. They became notorious because of a major oil spill, but the situation seems to be under control again. Are you interested in investing in BP? On this page you can directly discover the best method to buy BP shares! You can also find the latest share price of BP on this page.
Do you want to buy BP shares? You can directly trade in BP stocks with one of these reliable brokers:
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How can you actively trade in BP?
You can choose to actively trade in BP shares. By actively trading you can respond perfectly to the latest developments. The disaster in which a lot of oil leaked into the ocean has put the share price under considerable pressure in the past. By actively trading BP shares you can respond to these changing market conditions.
But what is a good party to actively trade CFD BP shares? A good party for this is Plus500. At Plus500 you can try the possibilities completely free with a demo. Use the button below to open a free demo account with Plus500:
Do you want to know what the latest BP share price is? In the chart below you can request the CFD price of the BP share. You can also open a position in the share directly by using the buttons.
Is it wise to invest in BP?
The fact that the results of a company such as BP are highly dependent on the socio-economic climate was evident in 2020. The price war between Saudi Arabia and Russia caused the price of oil to collapse and, at the same time, the corona pandemic caused the overall demand for oil to fall. Despite this type of setback, BP managed to survive and even took advantage of these developments to draw up a new strategy.
The company has set up a new strategy to transform itself into a hybrid energy company, reducing investments in oil and gas while increasing investments in renewable energy. Sustainability is, of course, a hot topic and investors are also finding this increasingly important: if BP takes this seriously, it can certainly boost the share price.
So far, it certainly looks as if BP is taking sustainability seriously. The company has entered into various collaborations that contribute to making its activities more sustainable. For example, together with Shell and Total, the company has decided to set up infrastructure for the transport and storage of carbon dioxide in the North Sea. The company is also working with Equinor to set up wind turbines and to set up a hydrogen production facility with Oersted on.
It is clear that BP is still trying out which techniques work best. If the investments turn out well, this can boost the share price. Moreover, the company is still paying an attractive dividend, so buying BP shares can certainly be interesting. However, it is important to remember that oil is becoming less and less important; there comes a time when BP really needs to make a clear turnaround.
To buy BP shares you only have to go through a few simple steps. First you need to open an account with a broker. A broker is a party that makes it possible to buy and sell shares. Nowadays, you can choose to try the possibilities with a demo or to invest directly with an amount of money.
Then you have to choose a good moment to buy shares. You can buy the shares directly, or you can choose to place an order. With an order, you only open a position when the price reaches a certain value. It may be wise to enter at different times. In practice, it is very difficult to determine whether the price is at a high or a low.
Once you have taken up a position, you are not finished: you also have to define an exit strategy. Are you investing in BP to build up an income from dividends? Then you may be able to hold on to the share for decades. Do you actively trade in BP shares? Then it is important to carry out an analysis and determine when it is wise to sell the shares again.
Before buying BP shares, it is important to apply a good investment strategy. For this, you have to investigate whether the share is currently worth buying.
It is wise to analyse the oil price first. A company like BP achieves much better results when the oil price is high. Do you think the oil price will rise in the future? Then an investment in BP can be extra attractive.
If you want to buy stocks in the long term, it is important to check the financial publications carefully. Here you can also find BP’s dividend schedule. Companies regularly pay out dividends, and you can benefit from this as an investor.
When you invest in the share you can perform various analyses. Depending on your strategy, we recommend one of these analyses:
- Fundamental analysis: is the company intrinsically worth more or less than the price?
- Technical analysis: is the price moving according to a fixed pattern?
BP as an investment for income
BP can be a good investment for people looking for shares that provide an income. Even during the corona crisis, it paid a net dividend. At the price at the time of writing, the dividend yield is around 6%. They have reduced the dividend yield, but there is a good chance that it will increase again in better times.
The company also aims to be fully CO2-neutral by 2050. These investments in a more sustainable future are important. Many analysts believe that the oil industry will soon be over. In the short term, this will not be as bad as expected, but now that the climate is becoming a central issue, oil is becoming less and less important.
The biggest competitors
BP is one of the largest state independent oil companies. The other oil companies in this list are Chevron, Total, ExxonMobil, Shell, and ConocoPhillips. It is wise to keep an eye on these competitors, both in good and bad times.
Research how different companies are performing. That way you can determine whether BP is the most attractive choice as an investment.
You only have to go through a few simple steps to buy BP shares. First, you need to open an account with a broker. A broker is a party that makes it possible to buy and sell shares. Nowadays, you can choose to try the possibilities with a demo or to invest directly with a sum of money.
You then have to choose an entry point. You can buy the shares directly, or you can choose to place an order. With an order, you open a position when the price reaches a certain value. It may be wise to step in at different times. In practice, it is very difficult to determine whether the price is at a depth or peak.
Once you’ve taken a position, you’re not done yet. You also need to establish an exit strategy. Do you invest in BP to build dividend income? Then you may be able to hold the share for decades. Do you actively trade in BP shares? Then it is important to perform an analysis and determine when it is wise to sell the shares again.
What is BP doing?
BP is a large state-independent oil company. In the past, the company was called British Petroleum or Amoco. The headquarters of the company can be found in London. BP is active in approximately 70 countries. The oil company produces millions of barrels of petroleum per day.
In 2017, BP’s share was 20% of total US petroleum production. BP also accounted for approximately 30% of the production of the Russian state oil company Rosneft in 2017. BP processes much of the petroleum in its refineries. These refineries can process 1.9 million barrels of crude oil every day.
The oil company is active in various areas. BP is active in the research and production of electricity, gas, and they also recycle products.
Keep an eye on the competitors
Before investing in BP stocks, it is wise to pay close attention to the competition. BP’s largest and best-known competitor is the Dutch Royal Dutch Shell. Other bigger competitors are the American ExxonMobil and the French Total.
It is always smart to check how the other companies are doing financially. That way you can analyse whether an investment in a competitor’s share might be more attractive. It is also important to investigate whether BP can still compete.
The price of oil
A stock like BP always correlates strongly with the price of oil. The relationship is not entirely one on one: if the price of oil rises but the company does not function properly, the price of a BP share can still fall.
Still, the BP company makes a living from oil. When the oil price is doing well, BP’s profitability can increase further. Are you considering an investment in BP? Then it is wise to also look at the company’s vision for the future.
You can also choose to invest directly in oil as a commodity. In this article, we’ll discuss how you can invest in oil profitably.
BP’s branches in the Netherlands
BP is also active in the Netherlands. BP has been 100% owner of the BP Rotterdam oil refinery since 2007. The location of this company is Europoort. The company has a branch in Pernis. The PB oil refinery in Rotterdam can process 400,000 barrels of petroleum every day. BP also sells its products in the Netherlands. There are about 300 BP filling stations in the Netherlands. BP has a market share of 14% in the Netherlands.
BP and the energy transition
Climate change is one of the most important issues. The world needs more energy to sustain its rapid growth. At the same time, there is a demand for fewer emissions. CO2 emissions must be reduced in the future. Just focusing on renewable energy is not enough. Worldwide emissions should also diminish. BP, therefore, tries to improve its products.
BP customers can reduce their emissions thanks to these improved products. Besides, BP is reducing emissions from its refinery. They investigate whether it is possible to disconnect the residual heat from the refinery in Rotterdam. Companies and households in the region can then use this residual heat. BP is also active in the field of renewable energy. For example, BP in the Netherlands is developing and realizing solar parks.
Although oil companies are becoming less popular due to the increased focus on climate change, we are still very dependent on black gold. Do you think there is still a future for a company like BP? Then you can consider investing in BP by buying the shares.
A company with a bright future
In 2010, there was an explosion and oil spill involving the Deep Water Horizon oil platform. This event damaged BP’s reputation. For years, BP has to pay damages. The payment of claims and fines is decreasing every year. BP has also implemented cost savings.
As an investor, you can benefit from a similar crisis by responding intelligently to it. When a disaster strikes, the share price will often fall sharply. You can then open a short position. When you open a short trade, you make money when the price of a stock falls.
Another strategy you can use is to look for a new, attractive moment to buy. In case of panic, the markets often react too strongly. You can use such a moment to buy a share like BP at a nice discount.
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About
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.