ENERGY giant BP has forecast "exceptional" results in its oil trading division after a period of volatility in prices triggered by the war in the Middle East.

The FTSE 100 oil major upgraded its outlook on Tuesday, which marks a sharp recovery from the "weak" performance reported in the final quarter of 2025.

The anticipated surge in profit comes as global energy markets were rocked with heightened volatility, particularly in the latter half of the first quarter.

Brent crude prices - the international benchmark for oil prices - averaged $81.13 per barrel during the period, a significant jump from the $63.73 average seen in the fourth quarter of 2025.

The blocking of the Strait of Hormuz - a narrow waterway between the Persian Gulf and the Gulf of Oman where around a fifth of the world's oil supply flows through - has been viewed as the top trigger for price volatility, with traffic halting since the war broke out at the end of February.

BP expects stronger refining margins - which measure the profit BP makes from converting crude oil into products like gasoline and diesel - to add between $100m and $200m to its bottom line compared to the previous quarter.

The update comes after new chief Meg O'Neil (pictured) took the reins at the oil giant at the beginning of April. The new boss told staff that BP would be reorganised into a business focused on oil and gas production and another covering refining, distribution and retail, without setting out a timeline, the Financial Times has reported.

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