Jim Cramer Says Don't Sell BP Stock
Whatever happened to liquid gold?
Shares of BP slumped Monday after the U.K. oil major cut its long-term outlook and announced a $17.5 billion second quarter writedown.
BP now expects crude prices to average at $55 a barrel through 2050.
Triggering the gloomy forecast of oil prices was the coronavirus pandemic. BP foresees COVID-19 having a lasting impact on the global economy, and potentially lessening demand for energy over a sustained period.
BP also said the pandemic could speed the transition to alternative energy solutions. “The pandemic will accelerate the pace of transition to a lower carbon economy and energy system, as countries seek to ‘build back better’ so that their economies will be more resilient in the future,” BP said in a press release.
Prior to the coronavirus economic shutdown, BP announced it aims to be a net zero company by 2050. “ As part of that process, we have been reviewing our price assumptions over a longer horizon. That work has been informed by the COVID-19 pandemic, which increasingly looks as if it will have an enduring economic impact,” BP CEO Bernard Looney said in a press release.
Jim Cramer has long said to avoid oil and the companies associated with it. How should investors approach BP?
Cramer said now isn't your moment to sell the stock. Find out why in the video above.