BP’s stock is down again today, dropping 0.44%, even as the company commits to spending $3.5 billion in buying back shares from stockholders.

The oil and gas company’s debt is growing, rising from $21 billion in the last quarter to $24 billion this quarter. How that will be impacted by the billions in share buybacks has yet to be seen, but it has investors worried. The price of BP shares has continued to fall since late last month, and it has fallen much more steeply in recent days.

BP Is not meeting its sales goals, and the blame has been placed squarely on decreasing gas and oil rates. The cost of a barrel of oil is down by $10 from the September 2023 rates, now at about $85 a barrel. Those diminishing oil prices have had the biggest impact on BP’s revenues, making it difficult for the company to recoup its investment and operation costs.

A Tight Market Mean Rough Waters ahead

BP may be in for more bad news in the coming months. Oil prices are staying down for now and cannot break above $90 and stay there for any length of time. A powerful resistance level has been created there that is not likely to be broken until colder weather sets in. Oversupply problems are plaguing the oil industry right now and will keep BP’s stock price slow for the near future.

Oil prices are likely to surge closer to winter, which is when BP should expect to see a substantial gain in share price. Those investing now while the price is low may have their investments pay off in a few months when a multitude of customers come calling and looking to refill their oil supplies.

BP did not reach earnings expectations for its most recent quarter, which has also driven down the stock price.