Bishop (LSE: BP) Actions tend to follow the price of oil and that’s what they do today.

The Israeli strike in Iranian military facilities caused Brent Crude Racing 74 USD for a barrel. At the beginning of the month it was closer to 60 USD. It is an boost of over 20% in less than two weeks.

The price of BP shares did not boost so quickly, but still increases by about 3%, the second best FTSE 100 contractor after the defense giant BAE systems. Over the past week, it increased by 6%, but fell by 18% within 12 months.

Shock of oil prices

The price of oil has fallen on dumps, but nowNaleists are trying to update their forecasts. Saxo thinks that it can change for 80 USD. If Iran closes the Hormuz Strait, AND A bottleneck for oil tanks can be even higher.

Is the conflict escalating? Nobody knows. I think investors must look beyond the noise and think in the long run.

In my opinion, BP is no longer a core FTSE 100 Holding him was once. Climate change forced advice to think about all their strategy as a carefree trade so that Zero Zero would leave her on Earth No Man.

In addition, the world has become less energy -saving. Every day we consume amazing 105 -meter barrels of oil, but we get more economical bang for each barrel. Plus we have more renewable energy sources

There is also an operational risk because the oil becomes more tough to access. Another disaster, such as an explosion in the Mexican Bay in 2010, will harm the company over the years.

Income flows

Despite this, I began to build a position in BP actions at the end of last year. My average entry price was 414.5 pens. Today, shares trade in 391 pence. I have been downstairs so far, but I can live with it. No investor can expect to buy in an ideal time.

The slipping price of BP shares increased the profitability to a generous 6.2%. Analysts expect that this year it will reach 6.39% and 6.59% in 2026. I will reinvest every dividend.

On April 29, Bishop submitted basic profits from exchange costs in the amount of USD 1.38 billion for the first quarter. It was below forecasts and significantly reduced in the amount of USD 2.72 billion reserved a year earlier. However, he still covered USD 1.17 billion in the previous quarter.

Net debt increased, from USD 24.02 billion to USD 26.97 billion. This is a problem, something that the Jefferies broker marked in May when it lowered the actions. He warned that BP must choose between achieving the goals of reducing debts, reducing the purchase of shares or slowing down the investment.

Debt is a worry

BP also strives to collect cash to pay off the debt. This is a tough proposition because the global economy is fighting, but it can be easier to deliver if the oil remains raised.

The consensus of the analyst currently sees the price of shares up to 433 pence within 12 months. If this is true, it is an boost of 11% of today, increases to a complete return of 17% with dividends. Not bad, but he was hardly a bull.

Buying is a cyclical business on a cyclical market. Time to buy is when it is down, just like last time. When BP flies, he can really fly. I think it is worth considering, but only with a long -term view. And acceptance that even if BP is cheerful with the bull, the ride will probably be bumpy.