Beach Energy Share Price Down 5% as Oil Prices Tumble

At time of writing, Beach Energy Limited [ASX:BPT] is down 5.6% ­— trading at $1.605 in major volume.

From a peak of $2.26 early last month, Beach Energy has been trending downwards:

Beach Energy Share Price

Source: marketindex.com.au

The stock has been hurt badly by sliding oil prices.

While oil has been down recently, one resource is poised to take off. Find out more in our free report available here.

Oil price drop leads to Beach Energy sell off

On a day that saw WTI oil slide a further 0.2%, it appears investors have lost patience with Beach Energy in particular.

WTI stands for West Texas Intermediate and is the most widely quoted oil benchmark.

As you can see below, the slide in oil prices has coincided with Beach Energy’s fall:

Beach Energy Share Price vs Oil

Source: tradingview.com

Beach Energy’s share price future tied to further developments in oil price

With a future so closely tied to the price of oil, it is difficult forecasting where the stock could head.

Markets & Money’s Jason Stevenson does an excellent job of outlining why oil could get a big bounce in the coming months.

A lot hinges on Iranian sanctions and growing demand.

Demand from China is growing, and according to Jason Stevenson it will likely flaunt the sanctions on Iran by buying the unpurchased oil.

So if he is right, Beach Energy could be set for a big bounce as well.

Long-term risks include a recession, which has traditionally crushed oil prices as global growth slows.

All things considered, there could be a window of opportunity for Beach Energy, should it find its bottom in the coming weeks.

Regards,

Lachlann Tierney,

For Markets & Money

PS: One little discussed resource could be set for a ‘mega-boom,’ Jason Stevenson has the inside scoop in our free report available here.


Markets & Money is unlike any other finance newsletter. Our mission is to look at the world of investments and finance in a sceptical and contrarian way. Our editorial team looks beyond the headlines and obvious explanations to bring you what we think is really moving the market. More importantly, we’re trying to show you where the next big opportunities and where the big risks are that you might not be aware of. In Markets & Money you’ll read about the state of the Australian housing market, the future of the commodity boom, China’s rise to an economic superpower, the fate of the US dollar, and of course a whole lot more.


Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money