Oil prices surged in 2026 due to US military intervention in Venezuela and talk of a commodities supercycle. BP’s stock climbed nearly 6% since January, positioning it for its best annual gain since 2025. The company plans to increase fossil fuel spending by $1.5 billion annually, sparking investor interest and activist concern.

BP’s incoming CEO, Meg O’Neill, will focus on natural gas licenses in Trinidad & Tobago, shifting the company’s strategy towards fossil fuel production. Despite activist investor backlash, most shareholders are content with BP’s new direction, which includes reducing low-carbon transition spending by $5 billion annually.

Morningstar rates BP stock with a High Uncertainty Rating due to volatile commodity prices and a lack of competitive advantage. The stock is trading slightly above its fair value of £4.70, offering a 5% dividend yield to income seekers. Investors await BP’s upcoming results on Feb. 10 to assess the true value of the stock in 2026.

Read more at Morningstar: Is BP Stock a Buy?