London, Jan 21, 2026, 08:05 GMT — Regular session
- BP shares were up roughly 0.5% in early trading in London.
- The oil giant revealed new share repurchases as part of its current buyback programme.
- Traders are factoring in softer crude prices ahead of BP’s upcoming earnings report.
BP shares climbed roughly 0.5% to 439.8 pence in early Wednesday trading, building on Tuesday’s close at 437.65 pence. (Investing)
Investors are zeroing in on cash returns and balance-sheet discipline as BP prepares to report quarterly results. The company warned last week that weaker oil trading and falling prices would drag on fourth-quarter earnings and signaled $4 billion to $5 billion in impairments, mostly tied to its low-carbon energy ventures. RBC analyst Biraj Borkhataria called the update management’s way of “clearing the decks,” adding that a sharper pullback in buybacks to reduce debt could be the “next logical step.” (Reuters)
BP revealed on Tuesday it had repurchased 3,050,793 ordinary shares under a buyback plan first announced on Nov. 4, 2025. The volume-weighted average price paid was roughly 435.6 pence per share, with transactions spread between the London Stock Exchange and Cboe (UK). (Investegate)
Crude prices dipped on Wednesday, adding pressure on oil majors whose earnings depend heavily on commodity levels. Brent slipped 1.2% to $64.16 a barrel, while U.S. West Texas Intermediate dropped 1% to $59.76. IG market analyst Tony Sycamore described the Kazakhstan supply issue as “temporary.” The market remained focused on anticipated U.S. inventory increases and geopolitical risks. Gregory Brew from Eurasia Group highlighted that possible renewed U.S.-Iran tensions could keep prices supported. (Reuters)
Buybacks help by cutting the share count, but they don’t shield earnings from the ups and downs of oil and gas prices. That friction showed up early in 2026, as investors wasted no time punishing signs that buybacks might ease off.
In Europe, oil and gas shares are reacting to early signals from the sector. TotalEnergies flagged on Tuesday that its fourth-quarter results should match last year’s, with higher refining margins and renewable asset sales balancing out softer oil and LNG prices. The wider European energy sector was down 1.2% in morning trading. (Reuters)
Risk appetite in London’s blue-chip stocks has been patchy following U.S. President Donald Trump’s tariff threat tied to Greenland, which unsettled investors this week. “Geopolitical tensions have dented sentiment and cooled early-year exuberance,” said Laura Cooper, senior macro strategist at Nuveen, noting that the global growth and earnings outlook remains “not fundamentally” changed. (Reuters)
BP’s next big test arrives with its fourth-quarter earnings and call on Feb. 10. Investors will be watching closely for shifts in buyback activity and any updates on debt levels, trading, and low-carbon write-downs. (MarketScreener)
