BP ADR

This is our first report on oil major, BP. With its results just around the corner, the company’s stock has already begun an upward trajectory. Its last results were excellent with Brent averaging $114 per barrel, up from $102 per barrel in the initial part of the year. This had helped the company deliver an all-around beat. Its inventory levels were significantly below the five-year norm caused by decreased spare global capacity. Average European prices fell during the second quarter as increased LNG imports helped stockpiles recover.. Henry Hub increased by an average of 60% in Q2 in the United States from the first quarter. Strong demand for gas-powered electricity and restricted gas production development supported this. Besides, in oil production and operations, the result reflects higher realizations. Furthermore, customers and goods benefited from a considerable boost in refining profits, slightly offset by higher turnaround and maintenance activities. The contribution from the oil trade remained incredibly substantial. We initiate coverage on the stock of BP with a ‘Hold’ rating.