Dan Coatsworth, head of markets at AJ Bell, said: “The recent surge in energy markets has swung the pendulum back in favour of BP, but the company isn’t resting on its laurels as it continues to execute on its disposal plan.
“Higher oil and gas prices should improve the financial position of BP and potentially enable it to pay down debt at a faster rate. But selling off parts of the business, with the aim of also reducing costs, remains part of the picture too.
“The price tag on the sale of its Gelsenkirchen refinery to European outfit Klesch is under wraps but regardless of this figure, the resulting boost to BP’s cost savings target is arguably more significant.
“With the higher oil and gas price backdrop and progress on reshaping and streamlining the business, the stars are aligning for incoming CEO Meg O’Neill as she prepares to start next month.
“Investors will be watching closely to see what O’Neill has up her sleeves to build on the progress which has immediately preceded her taking over the top job.”
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