BP Expects ‘Exceptional’ Oil Trading Results
April 14, 2026
BP said on Tuesday it expects its huge oil trading desk to post "exceptional" results for the first quarter, signalling a windfall from the spike in oil prices LCOc1 triggered by the U.S.-Israeli war against Iran.
The company also said in a quarterly trading statement that its net debt would rise to between $25 billion and $27 billion from just over $22 billion in the previous quarter because of movements in working capital, an accounting measure of liquidity based on current assets minus liabilities.
This broadly echoed the first-quarter outlook from European rival Shell SHEL.L, which also flagged strong results in oil trading, an area where European majors are more active than U.S. competitors.
Higher Oil Prices, Higher Refining Margins
Global benchmark Brent crude soared to multi-year highs near $120 a barrel after U.S.-Israeli strikes on Iran began in late February, followed by Tehran's closure of the vital Strait of Hormuz shipping route and attacks on Gulf neighbours.
Brent LCOc1 averaged around $78 a barrel during the January-to-March quarter, compared with $63 in the fourth quarter and $75 a barrel during the same time last year, according to Reuters calculations.
BP's overall oil and gas production is expected to be broadly flat on the quarter, it said.
Refining margins rose to $16.9 a barrel in the first quarter from $15.2 in the previous three months, it said, adding this would help boost results in its refined products business by $100 million to $200 million.
Energy companies typically do not reveal full results of their trading divisions.
New BP CEO Faces AGM This Month
BP is due to report first-quarter results on April 28.
Meg O'Neill became the company's fifth CEO since 2020 this month, pledging to continue with a one-year-old revamp to redirect billions of spending from low-carbon projects into oil and gas to increase profitability.
She will face shareholders at the company's annual general meeting on April 23 after influential proxy advisers and some shareholders have supported votes against the board's wishes.
(Reuters - Reporting by Shadia Nasralla. Editing by Kirsten Donovan and Mark Potter)
