BP plc BP shares are trading higher by 1.45% to $39.87 Friday morning. Oil company stocks are up due to rising crude oil prices following U.S. sanctions on two Russian oil shipping companies for price violations and supply uncertainty caused by the Israel-Hamas conflict in the Middle East.
West Texas Intermediate (WTI) crude oil prices surged by over 3.5% and crossed the $85 per barrel threshold.
Why It Matters
Geopolitical conflicts in regions with significant oil production or transportation infrastructure, such as the Middle East, can lead to concerns about the stability of oil supplies.
BP is a major player in the global oil market, and any disruptions in the oil supply chain tend to increase oil prices, benefiting companies like BP that are involved in oil exploration, production and distribution.
See Also: Goldman Sachs Bullish On Crude Oil With Israel, Hamas At War
As the conflict escalates, there is a heightened risk of supply disruptions in the Middle East, which is a major oil-producing region. This uncertainty can cause oil prices to surge.
BP's profitability is directly linked to the price of oil, so higher oil prices can lead to increased revenues and improved financial performance for the company.
According to data from Benzinga Pro, BP has a 52-week high of $41.38 and a 52-week low of $29.98.
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