London, Jan 19, 2026, 09:03 GMT — Regular session
- BP shares dipped 0.2% in early London trading as investors offloaded risk assets across Europe
- Oil prices dropped amid signs of a swift unwinding of the “Iran premium” in crude
- Tariff headlines are in focus this week as markets await BP’s Feb. 10 results, looking for clues on buybacks and cash returns
BP shares (BP.L) slipped slightly on Monday, last seen down 0.2% at 439.35 pence. Earlier, the stock fluctuated between 435.95 and 439.60 pence during the session. At 0818 GMT, it was trading 0.90 pence below the prior close, based on delayed market data. (Shareprices)
The shift was more about the market than the company. Investors dumped European stocks following renewed tariff threats from Washington, reigniting trade-war jitters and dragging major players like BP down with them.
The pan-European STOXX 600 dropped 1.3%, while London’s FTSE 100 slipped 0.4% after U.S. President Donald Trump threatened fresh tariffs tied to his push for the U.S. to buy Greenland. According to Reuters, Trump announced plans to slap an extra 10% tariff starting Feb. 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain — climbing to 25% on June 1 if no agreement is reached. (Reuters)
Oil, another key mover for major integrated producers, also eased. By 0734 GMT, Brent dipped 28 cents to $63.85 a barrel, while U.S. West Texas Intermediate dropped 36 cents to $59.08. Traders pointed to calming unrest in Iran, which trimmed the geopolitical “risk premium” — the extra cost investors build in for potential supply interruptions. IG market analyst Tony Sycamore noted the pullback came as that Iran premium unwound quickly. Vandana Hari, founder of Vanda Insights, predicted “rangebound movement” ahead, with U.S. markets closed for Martin Luther King Jr. Day. (Reuters)
For BP, a softer crude price backdrop can sap momentum from the sector, even when there’s little company-specific news. Shell and TotalEnergies tend to track the same blend of oil prices and overall risk sentiment, which Monday’s early trading reflected.
Deutsche Bank’s George Saravelos flagged concerns that the “weaponisation of capital” could wreak more havoc than tariffs by themselves, as traders considered Europe’s potential moves if tensions escalate. Some strategists had already shifted focus from trade flows to the underlying mechanics of global markets. (Reuters)
That said, the situation can shift quickly. Should tariff threats become policy and chip away at growth forecasts, oil demand forecasts could weaken, dragging down energy stocks. On the flip side, a geopolitical turn could stoke supply worries, pushing crude prices higher.
BP’s next major event is its full-year results on Feb. 10. Investors will be watching closely for any shifts in cash returns or buybacks following the recent trading update. RBC analyst Biraj Borkhataria weighed in last week, saying the update felt like new management was “clearing the decks.” He suggested a deeper cut in buybacks could come next. (Reuters)
Traders will watch tariff developments tied to the World Economic Forum in Davos while tracking crude’s moves, ahead of U.S. markets reopening Tuesday following the holiday.
