BP, TotalEnergies Post Higher Q1 Profits on Oil Surge

European oil majors BP and TotalEnergies reported sharply higher first-quarter profits this week, fueled by surging crude prices and exceptional trading gains amid the Middle East conflict that began on February 28.

BP announced a net profit of 3.2 billion dollars on Tuesday, more than double the figure from a year earlier. The British company attributed the result primarily to its oil trading operations, which delivered a profit before interest and tax of 3.2 billion dollars in its customers and products division, the strongest performance since Russia's invasion of Ukraine in 2022. TotalEnergies followed on Wednesday with a net profit of 5.8 billion euros, a 51 percent increase year on year. The French company cited higher oil prices, robust output growth in regions including Brazil, Libya and Australia, and strong trading results in its refining and chemicals segment, which saw earnings quintuple to 1.6 billion euros.

The windfall stems from the war's disruption of Gulf oil supplies. Since Iranian forces closed the Strait of Hormuz, more than 13 million barrels per day of production, equivalent to about 13 percent of global supply, has been trapped in the region. Brent crude...