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BP received approval to drill 2 new oil wells in the North Sea

• The chart shows BP share price movements in October.
• The current share price is 559p (at time of writing).
• Shares -7.6% from 2018 highs; +23.2% from 2018 lows; +7% year-to-date
• UK Oil and Gas Authority approved BP’s plans to develop 2 wells in the Alligin Field, 140km west of Shetland.
• BP has a 50% stake in the field and plans to invest £230m in development.
• It is expected to product 12,000 barrels of oil equivalent per day by 2020.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BP– An Example

Let’s say you think that BP is likely to rise as a result of this news. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 559p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BP share price rises by 10% following the news. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. BP shares fall back 5% and hits your stop-loss. Your loss would be £500

This is provided for information purposes only. It should not be taken as a recommendation.