European Oil Majors Cash In on Trading Gains Amid Iran War Disruptions
The Iran war has exposed a significant divide between European and American oil majors. BP's first-quarter profits more than doubled to $3.2 billion, largely thanks to exceptional trading gains. The company traded about 12 million barrels of oil per day, eight times its refining capacity.
TotalEnergies reported a net profit of $5.4 billion in the quarter, driven by strong trading performance. Shell also flagged a strong first-quarter trading performance ahead of its May 7 results.
The European majors' ability to shift barrels around the world can sometimes trump pumping them out of the ground, making their trading operations both a significant upside and risk factor. BP's working capital jumped by $6 billion in the quarter, including $4.1 billion driven by higher oil prices and longer shipping routes.