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BP Shares Will Keep Rising: Charts

BP shares are recovering the losses suffered since the Gulf of Mexico disasterand will steadily rise to almost double the low they reached last summer, when the company’s inability to cap a leaking oil well eroded investor confidence, Clive Lambert, director of FuturesTechs told CNBC on Thursday.

The stock rose to a six-month high earlier this week when UK newspaper The Daily Mail reported rival Royal Dutch Shell had considered a takeover bid during the Gulf of Mexico oil spill.

“The outlook is looking a lot better than it was at times last year,” Lambert said, adding the stock was “on the road to recovery”.

He forecasts the stock will rise to 525 and then 555 pence from around 500 pence currently. The stock tumbled below 300 pence in June 2010.

BP’s Deepwater Horizon rig blew up in April 2010, killing 11 workers, and had spewed millions of gallons of oil into the Gulf since the disaster.

The White House oil spill commission said in a report on Wednesday BP and its partners made a series of cost-cutting decisions that ultimately contributed to the oil spill that ravaged the Gulf of Mexico coast over the summer.

The news failed to halt the rise in BP shares, with the stock up 2 percent in London around midday on Thursday.