Filling up on BP.

BP @ 404.25p, -1.70p (-0.42%)

The long running saga of BP's return to acceptance and a place amongst its peers continues.
However, with the recent surrender in the barrel of a price of oil from around $115 to the present $65 (a 5 year low we are told), perhaps the detailed assessment of its assets and global footprint, along with its divestment program (to make recompense for the Gulf of Mexico tragedy), might put it in a strong position to address a lower oil price.
I say lower, but it really doesn't seem that long ago that the price of a barrel of oil was firmly stuck at $25 and I recall BP using a surplus of profits (from anything over $25), to buyback shares.

Today also saw BP begin to communicate its strategy to the end of the decade (www.bp.com: BP Presents Upstream Strategy to Investors), along with the announcement of a cost cutting and restructuring program to meet the outlook for a lower oil price (www.reuters.com: BP to spend $1 billion on hundreds of job cuts, restructuring).

Anyway, that being the case, and the resultant bombing out of the oil and energy resource sector (surely a short term reaction), I am taking the opportunity to add to my holding in BP, in the hope that this is a near bottom in the price of oil and sentiment towards the sector. Although repairing sentiment to BP remains a longer work in progress and perception.

It goes without saying that I am assuming that the near 6% yield can be maintained and add to my returns in the coming year.

The transaction does also help to reduce the cash portion of my portfolio to around 5.2% (7.57% as at my November 2014: Portfolio Update.).