Should I buy BP stock in 2025? Complete Guide for UAE Investors

What is BP?

How much is the BP stock?

The price of BP stock is rising this week. Currently trading at $29.17 on the NYSE, BP shares are up 0.79% over the past 24 hours and have climbed 6.23% in the last week. The company’s market capitalization stands at $75.86 billion, with an average 3-month trading volume of 11.99 million shares. While the current P/E ratio is not available due to negative earnings, BP offers an attractive dividend yield of 6.58% and has a low stock beta of 0.38, indicating relatively modest volatility. This combination of a robust yield and historically stable price movement may appeal to income-focused investors in the UAE market.

Our full analysis on the BP stock

Having conducted a rigorous review of BP’s latest financial disclosures alongside a three-year contextual study of its market behavior, we bring forward a comprehensive, proprietary analysis synthesizing quantitative financials, technical signals, sector-wide shifts, and relative competitive performance. By integrating multiple analytics layers, our approach surfaces both the granular and overarching drivers shaping BP’s valuation today. So, why might BP once again represent a pivotal strategic entry point into the global energy sector as we move toward 2025?

Recent Performance and Market Context

BP’s share price currently stands at 361.12 GBP on the LSE (+0.88% daily) and $29.17 on the NYSE (+0.79% daily), reflecting a notable weekly rebound (+6.23%), despite subdued performance over the past twelve months (-21.01%). This recent uptick aligns with a broader cyclical recovery across the integrated energy space, underpinned by stabilizing crude markets and improved cash generation.

Several positive developments have coincided to enhance investor sentiment:

• Strategic Realignment: In February 2025, BP announced a decisive pivot, scaling up oil and gas investment to $10 billion per year and refocusing on high-return conventional assets, a move widely interpreted as a direct response to prevailing shareholder preferences for yield and capital discipline.
• Major Operational Milestones: Ten final investment decisions (FIDs) in 2024, alongside project launches (notably the Tangguh UCC in Indonesia and the Azeri Central East platform in the Caspian Sea), signal operational momentum and expanding future cash flows.
• Supportive Sector Macro: Global energy demand remains robust, with OPEC+ maintaining measured supply adjustments. The resulting market equilibrium is supportive of oil prices, sustaining profit pools for majors like BP.

Such moves position BP not merely as a reactive player, but as a disciplined, forward-looking supermajor, adept at navigating volatility to maintain shareholder alignment.

Technical Analysis

Current technical readings present a notably bullish complexion:

• Relative Strength Index (RSI, 14-day): Stands at 55.03—positive and indicative of healthy, non-overbought upward momentum.
• MACD (12,26,9): Positive at +0.48, interpreted as a ‘buy’ signal and suggestive of trend acceleration.
• Moving Averages: The price sits above the shorter-term (5-, 20-, 50-day) moving averages, each affirming a near-term bullish structure. While the 100- and 200-day moving averages suggest neutral to slightly negative long-term pressure, the confluence of immediate-term strength against longer-term averages historically often precedes sustainable upward reversals.
• Support & Resistance: Daily support is established at 358.15 GBP, with resistance at 361.80 GBP—prices currently test the upper bound, putting a technical breakout within view.

Short- to medium-term trading momentum, reflected both in price action and oscillators, positions BP attractively for tactical investors seeking an entry point ahead of potential breakouts, especially as the stock stabilizes near cyclical lows.

Fundamental Analysis

Despite recent net losses (-$1.2 billion TTM), BP’s underlying fundamentals denote powerful value drivers:

• Revenue and Cash Generation: With $185.41 billion in TTM revenue and $27.3 billion in 2024 operating cash flow, the group outpaces many peers in cash generative capacity. Adjusted EBITDA for 2024 registered a robust $38 billion, highlighting underlying operational resilience.
• Profitability Pathway: Cost discipline is bearing fruit—BP targets $2 billion in annualized cost savings by year-end 2025. Upstream output is up 2% year-on-year, affirming operational growth amidst a controlled capex regime.
• Valuation Multiples: With a forward P/E of 9.03 and Price/Book of 1.3, BP trades at a discernible discount to both sector and historic averages—significantly below the multiples assigned to pure renewable or tech-driven energy firms, suggesting unjustified undervaluation amid its shift to higher-margin core businesses.
• Dividend Strength: The stock offers an attractive 6.58% yield ($1.92 annual dividend), which stands out globally—and is particularly relevant to the AE market, where yield sustainability and currency strength are prized attributes.

Structural Strengths:

• BP’s position as a global “supermajor” affords economies of scale, vertical integration, and resilience across pricing cycles.
• The extensive global footprint and broad portfolio spanning conventional oil & gas, renewables, and offset solutions make BP a leader in navigating energy transition complexities.
• Management under CEO Murray Auchincloss has demonstrated adaptability—leveraging both innovation and strategic recalibration to maximize returns and operational agility.

Volume and Liquidity

Trading in BP remains deep and liquid, with a three-month average daily volume at 12 million shares. Such vibrant liquidity reflects consistent market confidence and facilitates efficient price discovery—an important consideration for institutional and individual investors seeking exposure without substantial slippage.

• Market Float: The broad and diversified shareholder base ensures ample float, supporting dynamic price movements and enabling the stock to respond rapidly to catalysts.

In summary, the sustained high volume, especially during periods of technical reversal, indicates an environment ripe for revaluation and the rapid materialization of upward moves.

Catalysts and Positive Outlook

A range of forward-looking catalysts underscore BP’s positive outlook:

• Strategic Refocus: The return to high-margin oil and gas operations, coupled with lower capital deployment in renewables, has reset expectations for increased free cash flow and faster capital returns.
• Operational Expansion: New project start-ups and joint ventures—notably with XRG in natural gas, ONGC for Indian offshore, and further integration of carbon reduction assets—are poised to drive incremental growth.
• Cost Rationalization: The $2 billion cost saving target enhances operating leverage and supports dividend sustainability.
• Global Energy Dynamics: Oil prices remain well-supported by robust demand, limited new supply, and continuing global infrastructure investment—factors that should underpin sector profitability for at least the medium term.
• Analyst Upside: The average NYSE price target of $35.07 implies a 17.8% to 29.5% upside from current levels—suggesting market expectations for a share price rerating are gathering pace.

Furthermore, BP’s commitment to defensible ESG goals (notably in gas, hydrogen, CCUS) and its ability to flex between renewables and hydrocarbons position it well for evolving investor priorities, particularly relevant for AE-based investors attuned to energy transition imperatives.

Investment Strategies

BP’s current profile lends itself to several complementary strategies:

• Short-Term Entry: Technical indicators and recent performance momentum suggest a strong opportunity for tactical entry near current levels (361 GBP), with stops anchored at 358 GBP to manage risk.
• Medium-Term Positioning: With visible operational and cost catalysts expected to materialize by year-end 2025, investors could capture both price appreciation and the scheduled dividend (ex-date May 16, payment June 27).
• Long-Term Allocation: For patient capital, BP presents a compelling income and value proposition—one where the discipline of capital allocation, global scale, and adaptability to shifting energy paradigms could drive sustained rerating. The current price appears to be at—or near—a cyclical low within its three-year range, historically a favorable point for accumulation.

Investors with a strategic focus on global energy, including those in the AE market seeking diversification and income stability, may find the risk/reward profile particularly noteworthy as BP continues to reset around core profitability.

Is it the Right Time to Buy BP?

BP stands at the confluence of multiple positive forces: a disciplined return to high-margin oil & gas, a resolute focus on cost control, and operational milestones that signal expanding future earnings potential. The share price, sitting at the lower end of its three-year range and trading at attractive forward multiples, is further underpinned by resilient cash flows and a world-class dividend yield. Technical signals and strong trading volumes reinforce the sense that BP may be entering an auspicious new bullish phase, with analysts projecting meaningful upside from present levels.

For investors seeking exposure to global energy and income—especially those positioned in dynamic and yield-focused markets such as the UAE—BP currently seems to represent an excellent opportunity inspired by a blend of value, momentum, and strategic clarity. As the energy sector continues its evolution, BP’s adaptability and renewed focus on shareholder returns provide a compelling case for serious consideration and thoughtful portfolio inclusion as we head towards 2025.

The intersection of large-scale projects, capital discipline, and improving technical signals position BP as one of the most intriguing opportunities in the energy sector landscape at this juncture.

How to buy BP stock in the UAE?

Buying BP stock online is both simple and secure when you use a regulated online broker in the UAE. Investors typically choose between two main methods: classic spot buying of shares for long-term ownership, or trading Contracts for Difference (CFDs) for leveraged exposure and short-term opportunities. Whether you prefer the stability of owning shares outright or the flexibility of CFD trading, opening an account with a reputable broker is quick and can be done from your phone or computer. To help you choose the right provider, you’ll find a detailed broker comparator further down the page.

Spot Buying

Spot buying, or cash purchase, means you directly own BP shares in your brokerage account. With this method, you become a shareholder and can benefit from any dividends paid out by BP. Most UAE online brokers charge a fixed commission per order, typically around AED 15-25 (about $4–$7) on US stocks, with no recurring maintenance fees.

Example

Suppose BP’s share price on the NYSE is $29.17. With a $1,000 investment, you could buy approximately 34 shares ($1,000 ÷ $29.17), including a typical $5 brokerage fee.
✔️ Gain scenario:
If the BP share price rises by 10%, your 34 shares would be worth $1,100.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on BP’s price movements without actually owning the shares. CFD trading is popular for its flexibility—enabling you to go long or short, use leverage, and react quickly to market news. Instead of a fixed commission, you pay a “spread” (the difference between the buy and sell price) and, if you hold positions overnight, a small financing fee.

Example

With a $1,000 deposit and 5x leverage, you gain market exposure equivalent to $5,000 in BP shares.
✔️ Gain scenario:
If BP’s share price rises by 8%, your leveraged position delivers a 40% return (8% × 5).
Result: +$400 gain on your initial $1,000, excluding trading fees.

Final Advice

Before investing in BP or any share, it’s essential to compare different brokers’ fees, trading platforms, and available features. The right choice will depend on whether you prioritize long-term ownership and dividends (spot buying) or want flexible, leveraged exposure (CFDs). Discover our comprehensive broker comparison further down this page to make an informed decision aligned with your investment objectives.

Our 7 tips for buying BP stock

The latest news about BP

BP’s stock has demonstrated robust short-term momentum with a 6.23% weekly gain and 'Strong Buy' technical signals. This performance is bolstered by favorable technical indicators on the London Stock Exchange, where current buy signals are noted across key moving averages and a 14-day RSI of 55, supported by a positive MACD, indicating continued investor confidence and potential further upside—factors closely watched by regional institutional investors in the UAE, given their active trading exposure to major oil and gas stocks.

BP delivers a compelling income proposition with a 6.58% dividend yield and confirmed upcoming payment on June 27, 2025. This high yield and a reliable dividend record are particularly attractive to income-focused investors and sovereign wealth funds in the UAE, who traditionally favor consistent and sizeable shareholder returns from global energy holdings. BP’s dividend policy stability further strengthens its profile among portfolios seeking low-volatility, cash-generating assets.

The company’s increased focus on traditional oil and gas, with $10 billion in annual spending and regional project partnerships, aligns with Middle East energy strategies. Recent strategic shifts emphasize maximizing cash flow from high-margin hydrocarbons, resonating with UAE’s own energy sector leadership and its regional partners. BP’s renewed commitment includes joint ventures and partnerships relevant to this region, fostering local business relationships and cross-border investment synergies that may reinforce its standing among MENA fund managers.

BP’s robust financial health, with $27.3 billion in operating cash flow, $34.05 billion in cash reserves, and disciplined capital allocation, underpins investment confidence. The company’s execution of $2 billion targeted cost savings by end-2025, together with continued investment grade ratings, limits downside risk and appeals to risk-averse institutional investors in the UAE. These attributes ensure BP’s resilience and capacity to weather commodity price volatility while maintaining stable shareholder payouts.

Analyst sentiment supports moderate upside potential, with consensus price targets 17.8–29.5% above current levels and a ‘Hold’ rating reflecting balanced risk and opportunity. Major financial institutions remain optimistic about BP’s capacity to generate value through its oil and gas focus and cost discipline, with price targets that suggest meaningful price appreciation. This outlook, when combined with attractive valuations and fundamental strength, provides a constructive context for UAE-based analysts and investors evaluating medium-term allocation to BP within diversified global portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.