The BP share price has staged a big comeback in 2026. After years of strategy U turns, falling profits and boardroom upheaval, many investors had written BP off. Now, with oil above $100 a barrel and a new chief executive in charge, the question is back: is BP a buy again?
I have updated this guide for October 2026.
The BP Share Price in Context
BP has had a rocky decade. Its shares crashed to around 200p during the pandemic in 2020, and the company cut its dividend that year.
Since then, the recovery has been slow and uneven. In 2026, though, things have moved fast. The shares fell to around 445p in July, then climbed to roughly 596p by mid October as oil prices surged.
What Is Driving the BP Share Price in 2026?
Higher Oil Prices
The biggest factor is oil. The war with Iran has disrupted shipping through the Strait of Hormuz, and Brent crude rose from around $70 in July to above $100 in the autumn. You can read more in our guide to Iran oil prices.
Because BP’s profits rise and fall with energy prices, that has fed straight into its results. Underlying profit jumped to $5.7 billion in the second quarter, up from $3.2 billion in the first.
A New Chief Executive
Meg O’Neill took over as chief executive in April 2026, joining from Australian gas company Woodside. Her priorities are a stronger balance sheet, a simpler business, tighter spending and better operations.
So far, BP has sold assets including a stake in Castrol, its US onshore wind business and some US pipeline interests. It plans to set out a full new strategy in December.
Falling Debt and a Growing Dividend
According to BP’s second quarter results, net debt fell to $22.3 billion, down from $25.3 billion three months earlier. BP also raised its quarterly dividend by 4% to 8.66 cents a share.
The Risks Behind the BP Share Price
Despite the rally, BP is not a one way bet.
Oil Could Fall Just as Fast
Much of BP’s 2026 gain rests on high oil prices caused by war. If peace returns and shipping through the strait recovers, prices could drop sharply, and the shares would likely follow.
Strategy Risk
BP has changed direction several times in recent years. The December strategy update could reassure investors, but it could also disappoint. Until then, there is uncertainty.
Windfall Tax and Regulation
In addition, UK North Sea profits face the Energy Profits Levy until March 2030. Climate rules in Europe could also raise costs over time.
Is BP a Buy Right Now?
It depends on what you want from your investments.
If You Want Growth
BP is not a fast growing company. Most of its share price gains in 2026 have come from the oil price rather than the business growing. So if you want long term growth, other sectors may suit you better.
If You Want Income
For income investors, BP looks more appealing. The dividend is rising again, and lower debt makes it more secure. Our guide to high yield dividend stocks compares it with other big UK payers.
If You Already Own Shell
BP and Shell are very different investments right now. Shell has a steadier track record, while BP is a turnaround story with more upside and more risk. Our guide to investing in energy stocks compares the two.
The BP Share Price: The Bottom Line
BP’s recovery in 2026 is real, but it leans heavily on oil prices that could fall. The new chief executive is making the right noises, and December’s strategy update will be a key test.
If you buy, consider holding BP inside a Stocks and Shares ISA, keep it as one part of a diversified portfolio and be ready for big swings either way.
Content on IceburgWealth.com is for general information only and is not financial advice. I am not a regulated financial adviser, and tax rules and figures can change. Always do your own research and consider speaking to a qualified adviser before making any financial decision.
This article is part of our UK Investing Guide, where you will find every related article in one place.
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That’s an interesting read
Thanks Natalie, glad you enjoyed it. BP has been a tricky one to call, so I’ll be keeping an eye on how the turnaround plays out.