BP (LSE:BP.) said its oil trading division is set to deliver an “exceptional” performance in the first quarter of 2026, driven by a sharp rise in oil prices following the U.S.-Israeli military campaign against Iran. Disruptions in the Middle East have significantly impacted global energy markets, particularly after the effective closure of the Strait of Hormuz restricted flows of Gulf crude, prompting traders and refiners to seek alternative supplies and pushing prices higher.
In its latest trading update, BP indicated that its oil trading arm is expected to achieve “exceptional” results for the quarter, marking a strong rebound from a “weak” performance in the final quarter of 2025.
The company also warned that net debt is set to increase, with projections in the range of $25 billion to $27 billion, compared with just over $22 billion at the end of the previous quarter.
“This is driven primarily by a significant working capital build in the range of $4 to 7 billion, largely due to the price environment,” BP said.
Upstream production for the first quarter is expected to remain “broadly flat compared to the fourth quarter of 2025,” reflecting stable output levels despite market volatility.
The update marks the first since Meg O’Neill assumed the role of Chief Executive Officer on April 1. She has been tasked with streamlining operations, increasing oil and gas production, and divesting underperforming clean energy assets.
O’Neill succeeds Murray Auchincloss, who departed last year after Albert Manifold determined that the company’s transformation efforts were progressing too slowly.
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