What impact will soaring oil prices have on BP’s earnings?

Rocketing oil prices on the back of the Iran war are set to boost BP’s first quarter figures after the cost of crude has surged past 100 dollars a barrel since the conflict started.

The FTSE 100 oil giant, which reports quarterly results on Tuesday, set the stage for a windfall from the crude price spike when it said earlier this month it was heading for an “exceptional” oil trading result in the first three months of the year.

The firm upgraded its first quarter oil trading guidance, which follows a “weak” out-turn for the division in the final quarter of 2025.

Oil prices have raced higher since the US- Israel war on Iran started on February 28 and are now more than 60% up so far this year.

Brent crude reached close to 120 dollars a barrel at one stage and is still above the 100 dollars level as peace talks falter and amid fears over a looming global energy supply crisis.

But the group also suggested there would be some adverse impacts, with upstream production now expected to be broadly flat compared with the previous quarter, while oil production would be slightly lower.

Net debt is also set to increase to between 25 and 27 billion dollars (£18.5 billion to £20 billion), up from 22.2 billion dollars (£16.4 billion) in the fourth quarter.

It will mark the first set of results since new chief executive Meg O’Neill took over at the helm on April 1.

She replaced Murray Auchincloss, who was ousted last year as part of a leadership overhaul by new chairman Albert Manifold.

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The meeting came against a backdrop of BP’s recent shift away from renewables and back towards its core oil and gas business after its failed attempt to pursue a greener agenda left it lagging behind industry rivals and facing takeover threats.