London, March 20, 2026, 13:02 GMT
BP slipped around 3% to 565.8 pence in late London trading on Friday, retreating from a recent 52-week high. The pullback came as investors digested news of the oil giant’s German refinery divestment, set against a weaker broader London market.
It’s a notable step for BP, which is working to streamline its assets and strengthen the balance sheet ahead of Meg O’Neill’s arrival as CEO in April. With the Gelsenkirchen deal, BP has now logged more than $11 billion in announced or closed asset sales out of its $20 billion goal for 2027—and the company’s recurring cost-cutting target climbs to a range of $6.5 billion to $7.5 billion.
BP expects the deal to cut roughly $1 billion in operating costs connected to the site. The refinery handles about 12 million metric tons of crude oil annually. Some 1,800 workers are set to move over to Klesch after the deal wraps up in the second half of 2026. “With this transaction, we are strengthening our balance sheet,” interim CEO Carol Howle said. Investegate
The stock jumped 4.93% to 583.2 pence on Thursday, hitting a new 52-week high and leaving the FTSE 100 behind as it slipped. Volume surged, easily topping the 50-day average.
Oil isn’t stepping back just yet. Brent crude tacked on $1.67, landing at $110.32 a barrel as of 1030 GMT Friday, with the Iran war stoking supply worries—even as Western nations push to keep shipping lanes open at the Strait of Hormuz. “Damage has been done to production,” said Ole Hansen, Saxo Bank’s head of commodity strategy. He pointed to a market that’s still tight. Reuters
But as crude edges higher, inflation jitters stick around—even as it lifts producers. London’s FTSE 100 dipped 0.1% as of 1039 GMT. Energy stocks dropped 0.9%. After the Bank of England kept rates steady at 3.75% and flagged inflation risks, traders began betting on about a 60% chance of a hike by April.
BP draws a significant chunk of its oil and gas from the area at the heart of the recent upheaval. Annual reports tallied by Reuters indicate that about 22% of BP’s projected 2025 output comes out of the Middle East—matching Eni’s exposure, and nearly twice Shell’s 11%. BP, however, doesn’t operate any refineries in the region.
Barclays analyst Lydia Rainforth put the estimated impact of the Gelsenkirchen deal at $1.3 billion to $1.7 billion in liabilities off BP’s balance sheet, in addition to the operating-cost savings BP has already highlighted.
Some questions remain. The German deal still awaits sign-off from regulators and officials. Over in Indiana, more than 800 union members set up pickets outside BP’s Whiting refinery—440,000 barrels a day—on Thursday. The company had locked them out amid ongoing contract negotiations. BP said production should hold steady.
BP finds itself wedged between stubbornly strong oil prices, which may help its earnings, and a market increasingly bracing for higher rates alongside weakening growth. Schroders economist David Rees summed it up: if energy prices remain “higher for longer”, that broader market slide risks turning “more painful”. Reuters
