London, June 16, 2026, 10:02 BST
- BP shares were flat early Tuesday. The stock slumped the previous session when crude prices dropped.
- Brent slid to a three-month low. Traders bet the risk of a supply disruption in the Strait of Hormuz is fading.
- Oil traders look for updates on oil flows. BP’s restructure is set for July 1. Second-quarter results land August 4.
BP PLC traded steady in early London trading Tuesday, last seen at 517.5p at 10:01 a.m., after dropping 3.27% to 517p the prior session. BP underperformed the FTSE 100. No fresh earnings out from BP. Some traders cited oil price action. BP, Shell and other oil majors tend to move with crude, as their exploration and production businesses are tied to oil prices.
Brent crude fell to $81.73 a barrel on Tuesday, its lowest since March 10, according to Reuters. Prices tumbled almost 5% Monday as traders responded to news of a possible U.S.-Iran deal, raising chances of more oil moving through the Strait of Hormuz. For BP, losing some geopolitical “risk premium” can hit short-term cash returns from its production and trading businesses. On the other hand, cheaper crude sometimes helps profits in refining, fuel, and retail. Reuters
BP shares in London fell 4.5% Monday with energy stocks in the red, Reuters reported. The Strait of Hormuz moves about 20% of global oil consumption, and talk of reopening hit the risk trade that had pushed crude higher. Still, the road ahead looks rocky. “Anything other than a clean simultaneous unlock will mean renewed volatility in oil prices,” DBS Bank energy research head Suvro Sarkar said to Reuters. Reuters
BP is changing its leadership again. Gordon Birrell will head upstream, and Richard Harding becomes interim chief for downstream as the group goes back to a two-division structure starting July 1. BP says the move should simplify things for CEO Meg O’Neill, following changes in strategy, board issues, and pressure from investors for better returns. BP plans to switch to the new way of reporting results from January 1, 2027.
BP is pitching its case on its streamlined oil-and-gas focus, a 4.8% dividend, and hopes it can rebuild trust if it keeps cutting debt and holds firm on trading. BP reported $3.2 billion in Q1 profit in April, ahead of estimates because of oil trading. But net debt went up to $25.3 billion. BP is keeping buybacks on hold while it sorts out the balance sheet.
Bearish pressures stick out for BP: Brent’s slide drags on earnings and governance worries still hang over the stock. The company’s turnaround plan hasn’t yet closed the gap with top peers. The stock isn’t cheap, but not expensive either—probably near fair value. Morningstar’s Allen Good stuck to his 530p fair value and high uncertainty after BP’s chairman was ousted, leaving shares just below that mark early Tuesday. BP reports Q2 2026 earnings on August 4, though if any fresh headlines hit oil in Hormuz, that could hit the share price before then.
