BP's Burgeoning Share Price

published 9 June 2006

The media is now saying the oil price will climb up to $100 a barrel. But media frenzy can be a clear indication of a "market peak", says Lex in the FT. So does this mean BP investors should dump their stock?

Certainly not if yesterday's trading statement is anything to go by. The world's number two oil firm by market value said its second quarter production gained by 3.5% compared to the same time last year. Overall production was around 4.1m barrels of oil equivalent per day (boepd), compared to 3.97m boepd from April to June last year. Also the group is still making the most of high refining margins, as its complex refineries handle heavy crude better than its rivals, says Tom Bergin on Reuters.co.uk. What's more, the statement showed that BP had returned to growth in production outside of Russia.