BP Stock Rises on Higher Oil Prices

Crude prices are boosting BP’s stock but the company faces struggles with Exxon Mobil (XOM) over an oil production deal in Azerbaijan.
By Amanda Gomez ,

NEW YORK (TheStreet) -- BP (BP) - Get Report stock is up 1.27% to $35.96 in afternoon trading on Friday after oil prices gained as investors sought to book profits. Oil prices also benefited from a weaker dollar, which makes dollar-denominated commodities cheaper for foreign buyers, Reuters reports.

WTI crude is rising 1.51% to $49.06 per barrel on the New York Mercantile Exchange, while Brent crude is increasing 1.43% to $50.42 per barrel on the Intercontinental Exchange this afternoon.

Crude is rising even though U.S. energy firms added 11 rigs into production this week, bringing the total oil rig count to 341, according to data from Baker Hughes (BHI), Reuters noted.

Additionally, BP, a London-based energy company, is at a standstill with its U.S. peerExxon Mobil (XOM) over an oil production deal in Azerbaijan.

The renewal talks have reached a deadlock after BP reached a tentative agreement with the Azeri government, but Exxon Mobil is seeking a better deal because of weak oil prices, Reuters added.

The existing 30-year contract still has eight years left and is key to BP's production. The contract generates about a tenth of BP total output.

Separately, BP has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's good cash flow from operations and largely solid financial position with reasonable debt levels by most measures, which offsets deteriorating net income, poor profit margins and disappointing return on equity.

You can view the full analysis from the report here: BP

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Loading ...