This is what’s lifting the BHP Billiton Limited share price higher

Credit: Lucas Walters

Buyers could emerge this week for BHP Billiton Limited (ASX: BHP) as share prices dip slightly to sit at $30.34, down 1.3% as we round the corner into February.

The downward trend may not hold as reporting season kicks off for the diversified natural resources giant on February 20. Investors can expect healthy dividend cheques thanks to BHP’s substantial interests in commodities that have trended upwards in price over the last 6 months.

Oil prices alone have shot up by close to 50% from US$43 a barrel in June 2017 to the current position of around US$65 a barrel.

Similarly, copper prices were at US$2.70 in July 2017, now up to US$3.21 with the trend upwards looking to continue.

Market analysts forecast a considerable improvement in earnings per share for BHP in 2018 which should be evident in the interim results due later next month.

If analysts are on point, will Rio Tinto Limited (ASX: RIO) fare even better?

All eyes will be on BHP’s company announcements as the reports begin to flow in during February and the share price takes the potential upswing that high earnings usually merit.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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