LONDON, Jan 20, 2026, 09:07 GMT — Regular session.
BP Plc (BP.L) shares dropped 1.0% to 433.22 pence by 0907 GMT, following a 0.6% decline on Monday.
This matters since BP is a heavyweight in London’s FTSE 100 and a key crude proxy for the market. When oil prices shift, BP usually follows suit, even without new company news.
Investors keep circling back to a familiar question: just how reliable are the cash returns? BP’s buybacks, where the company scoops up its own shares, have played a major role in the story as oil prices continue to bounce around.
BP reported buying 3,053,288 ordinary shares on Monday through the London Stock Exchange and Cboe (UK), continuing its buyback programme announced on Nov. 4, 2025. The company paid a volume-weighted average price of 437.7339 pence on the LSE and plans to move the shares into treasury.
Oil showed little movement early Tuesday. Brent futures slipped 16 cents, or 0.3%, to $63.78 a barrel by 0740 GMT. Meanwhile, the front-month U.S. crude contract edged up 0.2% to $59.58 ahead of its expiry later that day. IG analyst Tony Sycamore noted that China’s data “provided a lift to demand sentiment.” Reuters
Risk appetite in Europe took a hit following the Greenland tariff dispute. London’s FTSE 100 slipped 0.4% on Monday after U.S. President Donald Trump warned of new tariffs on Britain and other European countries if the U.S. wasn’t permitted to buy Greenland, Reuters reported. The FTSE 250 dropped 0.9%.
Energy traders also took in an update from a peer. TotalEnergies flagged weaker fourth-quarter oil and liquefied natural gas sales. However, a surge in European refining margins boosted its downstream results.
BP is set to reveal its performance soon. In a Jan. 14 trading update ahead of its Feb. 10 earnings, the company flagged $4 billion to $5 billion in fourth-quarter impairments, mostly linked to its low-carbon energy ventures. It also cautioned that weaker oil trading and falling prices would hit profits. RBC analyst Biraj Borkhataria called it new management “clearing the decks.” Reuters
The downside scenario is clear enough. Should the tariff dispute escalate into a wider trade war, demand forecasts could shift abruptly—and oil prices tend to be the first casualties. That would squeeze buyback calculations again, particularly if trading revenue falls short.
BP will report its fourth-quarter and full-year results on Feb. 10. Investors will focus on updates about buybacks, net debt, and trading performance.
