BP’s revenues in the first three months of the year have more than doubled due to a jump in oil prices since the start of the Iran war. In its first results since the conflict began, the energy giant posted earnings of $3.2 billion (£2.4 billion) between January and March, citing “exceptional” performance in its oil trading division.
The sum was greater than analysts predicted and substantially exceeded income in the same time last year, which totaled $1.38 billion. The oil price has fluctuated dramatically since the start of the US-Israel war with Iran, since the vital Strait of Hormuz, which typically transports roughly 20% of world oil and liquid natural gas supplies, has been essentially closed.
Before the crisis, the worldwide benchmark for oil prices, Brent crude, was around $73 per barrel.
Since then, oil has soared to nearly $120 at one time, but has also dipped below $100 as speculation about when the Strait of Hormuz will reopen spreads. Brent presently trades at around $110 per barrel.
This volatility widens the spread between buying and selling prices, allowing traders to make larger profits. Profits in BP’s customers and products segment, which includes its oil trading unit, increased to $2.5 billion from $103 million a year earlier.
Also Read:
Christoph Klein: Reimagining Sustainable Investment with ESG Portfolio Management
Dr. Akintoye Akindele: Empowering the Future of Africa through Investment and Leadership
