Is it still worth buying Shell and Bp

I feel that the price of oil per barrel can and will increase but today the share price of Shell dropped sharply. What just happened?

They are offloading investment in Russia at a loss.
At least that was BPs issue, I presume shell are the same

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Remember the Ft 100 closed -257.71(-3.48%) on Friday. Both Shell and BP have to track the index. Buy them short term ( daily or slightly longer) until this correction downtrend is over.

No stock has to track an index?!
The index mirrors the stocks.

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It means similar to what you say. There are different ways of saying the same thing. If Ft 100 was down - 10% we wouldn’t see Shell and BP going up +20% barring some exceptional good news even even if oil is near $120 per barrel.

BP / Shell could and often do move a completely different to direction to the the FTSE100. The FTSE100 is just the largest London listed companies.

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They could easily move in the opposite direction, it depends what is driving the movements.

Look at BAE Systems for example.

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Or look at Shell and BP’s failure to rise with the FTSE after the pandemic crash. The FTSE 100 had pretty much recovered before this Ukraine thing kicked off, Neither Shell Nor BP were anywhere near their pre pandemic level.

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I agree with your point on BAE systems and it’s increase due to being a weapons manufacturer. But even BAE gave up 50p of its gains in the last 5 days. I also agree. BP was about 200p at start of pandemic and oil was at historic lows and your point that they have not recovered. I assume you are all long term investors. I was just thinking of making a profit on a daily or short term basis following the wave pattern pattern for BP. trying to select entry and exit points.

Daily profit on BP? Go to aim stocks.

Yes, because anyone who tries to do what your suggesting is confusing luck and talent.

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BP is a very Active stock while most of shares in AIM the spread is so large.

I agree with you. You need to be glued to the screen watching the chart and doing technical analysis while most people’s day jobs won’t allow this.

And even that is often not good enough to make money as there is no golden rule to follow, maybe a better chance in success is all you can get. :stuck_out_tongue_winking_eye: