What is driving the U.K. fuel panic and what comes next for BP?

Covid, amongst other things, has highlighted the fragile nature of worldwide supply chains built for efficiencies over reliability.
Anecdotes of things being hard to get post-Covid became commonplace. From cars and chips to labour, food, and now fuel as scenes of long queues forming at U.K. petrol stations have greeted viewers.

Despite UK-based oil companies having confirmed there’s “not a national shortage of fuel,” panic buying has left thousands of petrol stations out of fuel. The explanation for the panic, oil giant BP said last week it might “temporarily” close petrol stations thanks to a shortage of lorry drivers.

There is currently a shortage of drivers in Europe, the U.K., and the U.S., struggling to stay up with booming consumer demand following the re-opening. A shortage magnified within the U.K. as drivers from Europe returned home during the Covid pandemic on top of these that left following Britain’s Brexit from the ecu Union last year.

To ease the short-term pressure, the U.K. government has said it might issue 5,000 three-month visa’s for truck drivers to assist with the run-up to Christmas. It also announced the military had been placed on standby to move fuel supplies to assist ease the pressure on petrol stations.

To provide a longer-term solution, the govt has sent letters to just about a million drivers who hold the required heavy vehicle license (HGV), encouraging them to return to the industry, and announced plans to coach new drivers.

On Monday, the share price of BP PLC (LSE: B.P.) closed almost 3.5% higher aided by the worth of Brent oil prices trading to a replacement yearly high. Technically the share price of BP appears set to imitate after closing above trendline resistance near £326.00 coming from the June 2020, £376.55 high.

This will likely see BP retest and break the year-to-date high at £336.95 with scope to push towards subsequent layer of resistance at £350.00.

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