BP has reported a sharp rise in first-quarter profits, more than doubling to $3.2 billion, driven by volatility in global oil markets amid the ongoing Iran war.
The energy giant said the strong performance was largely fuelled by its oil trading division, which benefited from wide price swings following disruptions linked to tensions around the Strait of Hormuz. The waterway, which carries about 20 per cent of global oil and liquefied natural gas supplies, has been significantly affected by the conflict.
Brent crude, the global oil benchmark, climbed from about $73 per barrel before the conflict to nearly $120 at its peak, before settling around $110, creating favourable conditions for trading gains.
BP’s customers and products division recorded profits of $2.5 billion, a sharp increase from $103 million in the same period last year.
However, the company said its upstream production remained flat and warned output could decline in the second quarter due to disruptions in the Middle East.
ADVERTISEMENT
The results mark the first under new chief executive Meg O’Neill, who noted that the company is operating in a period of “conflict and complexity.”
Despite the strong earnings, analysts cautioned that uncertainty remains high, with production risks and geopolitical tensions continuing to shape the outlook for the energy sector.
