OPEC+ is considering a plan to increase oil production for a second consecutive month in June, according to insider reports. This move comes amid internal conflicts within the group regarding adherence to production quotas. Such decisions could impact various public companies in the oil sector, including Chevron (CVX), Exxon Mobil (XOM), and others.
This potential shift in strategy by OPEC+ is being discussed as the group faces challenges in maintaining compliance with agreed-upon production limits. The anticipated proposal aims to address market demands and stabilize global oil prices.
The discussion around production increases could have far-reaching implications for some of the major oil companies, such as BP, ConocoPhillips (COP), Shell, and TotalEnergies. These companies are closely monitoring the situation, as changes in production levels can significantly affect market dynamics and profitability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for BP PLC (BP, Financial) is $35.02 with a high estimate of $44.00 and a low estimate of $27.00. The average target implies an upside of 21.85% from the current price of $28.74. More detailed estimate data can be found on the BP PLC (BP) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, BP PLC's (BP, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BP PLC (BP, Financial) in one year is $35.51, suggesting a upside of 23.56% from the current price of $28.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BP PLC (BP) Summary page.
