Why BP Stock Is Trading Higher During Friday's Session

Energy stocks, with BP PLC BP among the leaders, are trading higher Friday as crude oil prices head for their strongest weekly rally since October 2022. The surge is a direct market reaction to escalating geopolitical turmoil in the Middle East, where fears of a major supply crunch are growing.

What To Know: The catalyst was a series of major Israeli airstrikes targeting Iran's nuclear and missile infrastructure, which also reportedly killed top military officials. This aggressive military action has reignited fears of a broader conflict that could threaten vital oil flows throughout the region.

Traders are particularly concerned about potential disruptions to the Strait of Hormuz, a maritime chokepoint that handles nearly one-third of all global seaborne crude shipments. Iran is a significant producer, pumping 3.3 million barrels per day.

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The threat has sent crude prices soaring. West Texas Intermediate futures are on track for a weekly gain of nearly 13%. Some analysts believe prices could climb much higher if the conflict escalates.

ING analyst Warren Patterson suggested a serious disruption could push oil to $120 per barrel. This bullish sentiment for crude has directly lifted the valuations of major oil producers.

Price Action: According to data from Benzinga Pro, shares of BP were trading up 2.57% at $31.72 late Friday.

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How To Buy BP Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in BP’s case, it is in the Energy sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to Benzinga Pro, BP has a 52-week high of $37.39 and a 52-week low of $25.22.

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