COP prices to change the picture — What caused the change?

Prices are high now for the first time.
Alliances caused the price to improve.
Russia- Ukraine war to pose a threat.

ConocoPhillips (NYSE: COP) is an independent exploration and production company. It explores for, produces, transports, and markets crude oil, natural gas, and other resources. The company operates in several segments, including Canada, Europe and some parts of Africa.

In the past few months, Equinor (NYSE: EQNR) has signed a strategic alliance with many companies, including ConocoPhillips, to develop a floating wind project in the Troll and Oseberg oil and gas fields. Since COP is among the big fishes in the European market of crude oil, the collaboration sent the price rocket to reach new horizons.

A few months after, the price rally cooled down as the news surfaced about Equinor and ConocoPhillips’ co-owned methanol plant being discussed to be shut down. Since it is Europe’s largest methanol plant, accounting for around 25% of the continent’s production. The possible shutdown can impact the share prices as it’s a major branch that plans withdrawal.

Threat turns to opportunity

Amid the ongoing Russia-Ukraine war, Russia, the biggest gas producer, has stepped down from the first position and handed it over to Norway. Since the alliance of COP and EQNR rule the industry in Norway, there is a high chance of them establishing a disguised monopoly over the Norwegian market.

The war has already wrecked the resources of both Russia and Ukraine, which checks them out from the leading natural gas countries. With Norway benefiting from this, it may take a lead that could be hard to cover.

ConocoPhillips, which abandoned Venezuela after its assets were nationalized, is in talks to sell Venezuelan oil in the U.S. to retrieve $10 billion in debt.

According to the report of The Wall Street Journal, ConocoPhillips and national oil company PdVSA are pondering a proposal that allows the US company to load, transport and sell Venezuela’s oil in the States. This may give COP a possibility to recover the money it lost in the country and help the US fulfill its energy needs.

The price tale

COP share prices have been on the rise since mid-2022. The prices have witnessed such a rally for the first time since incorporation. The current price action, which marked a new all-time high near $138.5, witnessed a slight downtick and held a spot near $121.5 at press time. The volume records a blend of sellers and buyers taking advantage of the price movements.

The 20-EMA lies below the COP price as the prices slope up. The RSI reaches the upper half range to show transitioning rules from sellers to buyers. The MACD supports the notion as it witnesses a thread of buyers while the lines undergo a bullish divergence. If current prices breach the $124.25, it can set to fly closer to $145.00.

All ratios, but EPS, of the company, are close to what the industry holds. The EPS for the company is one-third of what the industry has, indicating the company’s return constraint. It’s not a threatening sign as the company’s business cycle is longer than a year, which is normal for it to have a lower EPS.

Conclusion

ConocoPhillips is a company that operates in natural resources of energy, across the globe. COP has a potential to mark newer highs and show a stronger bull run. The holders to watch for the breakout level of $124.25.

Technical levels

Support levels: $109.75 and $98.50

Resistance levels: $128.77 and $138.75

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing