BP expects another quarter of gains from oil trading even as its upstream output falls, marking a second straight strong showing as the Iran conflict shakes energy markets. The company guided to lower second-quarter production and tied the drop to seasonal maintenance and Middle East disruption.
BP expects its oil-trading result to come in slightly higher in the second quarter than in the January-to-March period, when the U.K. energy major already flagged an exceptional performance. The company said Tuesday that it continues to navigate turmoil in energy markets tied to the Iran conflict.
Reported upstream production is expected to range from 2.17 million to 2.22 million barrels of oil equivalent a day, down from 2.34 million barrels of oil equivalent a day in the first quarter. BP attributed the decline to seasonal maintenance and the effects of disruption in the Middle East.
The update points to gains from a strong performance in oil trading for the second quarter in a row. That strength came just before renewed fighting in the Middle East caused a fresh bout of volatility in energy markets.
Source: MarketScreener
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