BP forecasts strong Q1 oil trading amid price surge

BP, the British oil major, announced on Tuesday that its oil trading division is poised for exceptional results in the first quarter, driven by a sharp surge in global crude prices amid the ongoing U.S.-Israel conflict with Iran. The war, which began on February 28, has disrupted energy supplies, including Iran's closure of the Strait of Hormuz and attacks on neighboring Gulf states, pushing Brent crude to multiyear highs near 120 dollars per barrel before settling around 100 dollars.

The heightened volatility in crude, natural gas, and refined products markets, particularly in late March, is expected to boost BP's trading performance significantly, following a weaker showing in the final quarter of 2025. Brent crude averaged 81.13 dollars per barrel over the January-to-March period, up from 63.73 dollars in the prior quarter, according to BP. The company noted that each one-dollar movement in oil prices affects its pretax operating profits by approximately 340 million dollars. Refining margins also improved to 16.9 dollars per barrel from 15.2 dollars, potentially adding 100 million to 200 million dollars to results in its refined products business.