Financial turbulence from U.S. tariffs causes a $4 billion decline in earnings for British petroleum corporations BP and Shell.
Rewritten Article:
Big losses for Britain's oil giants: Expect £3 billion drop in profits from BP and Shell due to global energy price slump
Troubles are brewing for Britain's biggest oil companies – BP and Shell – as global energy prices take a nosedive, causing their profits to plummet.
BP's earnings for Q1 2025 are predicted to drop significantly to $1.6 billion from $2.7 billion in the same quarter last year. Meanwhile, Shell's profits are forecasted to fall to $5.1 billion from $7.7 billion in Q1 2024. These figures will be revealed when BP reports its Q1 earnings on Tuesday, and Shell delivers its results on Friday.
The slide in profits can be attributed to several factors, including ongoing fears of a global economic slowdown and particularly from China, a major oil consumer. The international benchmark price for Brent crude oil, which influences oil prices worldwide, has plummeted around 12 percent so far this year and is trading at about $67 a barrel.
The current predicament has been further complicated by the OPEC+ cartel, which includes Saudi Arabia, Russia, and the United Arab Emirates, increasing the amount of oil they pump. This oversupply strategy has resulted in a glut of oil on the market, putting downward pressure on prices.
BP's struggles come at a time when the company is trying to shift its focus back towards traditional oil and gas operations. However, the cheaper oil prices could present a hurdle as the firm grapples with ambitious plans to reinvent its business. Chief executive Murray Auchincloss is under intense pressure from activist investors, including US firm Elliott Management, to improve performance.
Likewise, Shell faces challenges as it ramps up its fossil fuel output under new boss Wael Sawan. The company recently reduced its oil and gas production forecast for Q1, citing unexpected maintenance work and cyclones that affected output from certain wells. Sawan has spearheaded Shell's own return to traditional oil and gas, cutting spending on renewable energy to compete with US rivals such as Chevron and Exxon Mobil.
Investing Platforms for DIY Investors
To navigate the volatile oil market, here are some online platform options for self-directed investors:
- AJ Bell
- Hargreaves Lansdown
- Interactive Investor
- InvestEngine
- Trading 212
These platforms offer various tools and resources for investors to make informed decisions. While choosing a platform, carefully consider factors like fees, account types, available securities, research support, and customer service.
- In response to the volatile oil market and the struggling earnings of companies like BP and Shell, DIY investors can explore various online platforms to make informed decisions.
- One such platform is AJ Bell, offering tools and resources for investors to navigate their investments in the energy sector, including stocks like Exxon.
- Hargreaves Lansdown is another platform that provides support for self-directed investors, allowing them to invest in the energy industry, aiming for potential returns in 2025 and beyond.
- Interactive Investor is an option for those considering investments in the energy business, offering resources to help investors stay updated on earnings highlights in the industry, such as Exxon's or Shell's.
- Invest Engine presents an opportunity for DIY investors to gather information about investments in the energy sector and various companies like Exxon, Shell, and others, to create a diversified portfolio.
- Trading 212 is a platform that DIY investors can utilize to keep a close eye on the earning reports of energy companies like BP and Shell, while also monitoring measures taken by others in the business sector to navigate market fluctuations.
