Key Highlights

● BP's third-quarter Underlying Profit came in at $8.46 billion against a $7.33 billion consensus.

● One morning brief credits the beat to stronger refining margins.

● BP shares rose only slightly in London after the results.

● Brent traded at $117.80 a barrel as the Strait of Hormuz conflict disrupted flows.

BP (NYSE:BP) reported third-quarter results on Friday that beat expectations, and its US-listed shares are in focus before the New York open. According to one morning brief, BP's underlying profit came in at $8.46 billion, well above the $7.33 billion consensus. The brief credits the beat to refining margins.

Media reports said BP shares rose only slightly in London after third-quarter Net Income came in ahead of expectations, with a quote snapshot showing a gain of about 0.02% on the morning. No pre-market figure for the NYSE-listed shares was available in the sources reviewed as of about 8:30 a.m. ET. So BP is in focus rather than on a confirmed move.

The muted London response matters. A beat of more than $1 billion against consensus would normally draw a stronger reaction. That suggests investors may be weighing other parts of the report, such as cash flow, debt, or Shareholder payouts. Those details were not available in the sources reviewed.

Refining is having its moment

BP's results fit a pattern across Big Oil this week. Exxon Mobil (NYSE:XOM) reported Earnings excluding identified items of $17.51 billion, or $4.23 a share, on Friday morning. One market update noted that refining now out-earns Exxon's Upstream Business for the first time in at least six years. Exxon and Chevron (NYSE:CVX) were up about 1.8% and 1.7% in pre-market trading, according to one morning brief.

Fuel margins have widened as the conflict around the Strait of Hormuz has disrupted crude and product flows. Brent traded at $117.80 a barrel and West Texas Intermediate at $104.20, up 2.5% and 2.2% respectively, as of a 7:28 a.m. ET market update. Iran said four tankers struck mines in the strait, and Brent is up about 12% in October to a six-month high, according to market data.

BP is one of the world's largest integrated energy companies, with oil and gas production, refining and fuel marketing, trading, and a smaller low-carbon business. Its American depositary shares trade on the New York Stock Exchange and are part of the NYSE Composite, which tracks all common stock listed on the Big Board, including foreign ADRs.

Energy as a refuge on a tech-heavy down day

Friday's US backdrop helps explain why energy names are drawing attention. Nasdaq-100 futures were down about 2.6% at roughly 8 a.m. ET, according to market data. Investors are dumping AI-linked tech after Amazon (NASDAQ:AMZN)'s and Intel (NASDAQ:INTC)'s results. Dow futures were flat, supported by the oil majors and by a rotation into energy and health care.

There are risks to the refining story. Margins driven by geopolitics can reverse quickly if shipping through Hormuz normalizes or diplomacy makes progress. Qatari mediators are back in Tehran. Reports also suggest US strikes on Iran could resume after Tuesday's midterm elections, so prices could swing either way. Lower crude would also trim profits in BP's upstream business.

BP has also spent recent years reshaping its strategy and balance sheet. Investors will want to see whether the windfall goes to Debt reduction, buybacks, or investment. The sources reviewed did not detail BP's capital-return decisions for the quarter.

What to watch

At the 9:30 a.m. ET open, look at how BP's ADRs trade alongside Exxon and Chevron. Next, OPEC+'s seven-country subgroup is set to meet online on Sunday, Nov. 1, to decide December output targets. Developments around the Strait of Hormuz will remain the main swing Factor for crude, and for BP's trading and refining profits in the fourth quarter.