All eyes will be on oil giant BP for its results on Tuesday after a record-breaking performance by rival Shell.

With its fellow British petro-group posting an annual profit of £32billion for 2022, investors will be hoping BP can pull off a similar feat.

Despite oil and gas prices falling from last year, its shares have risen around 17 per cent since August as investors predict the end of China’s Covid curbs will spark a demand surge from the energy-hungry nation.

Weak output from sanction-hit Russia, the United States’ need to restock oil reserves as well as the Opec cartel’s seeming unwillingness to open taps further could also work in the company’s favour by keeping prices elevated.

But this could be derailed by the threat of a global recession putting the brakes on demand. 

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With this in mind, investors will likely be keeping an eye on BP’s outlook for the year beyond an expected strong set of results for 2022.

Analysts are expecting a performance similar to Shell’s, in which its annual profit more than doubled.

Attention will be paid to BP’s UK tax bill and to how much it is to pay this year after Chancellor Jeremy Hunt raised the windfall tax on North Sea profits to 35 per cent from 25 per cent – taking the total burden to 75 per cent.

And climate-conscious analysts will look for comments on a renewable energy strategy following reports earlier this week that BP is looking to scale back its green commitments in favour of cashing in on booming fossil fuel prices.

But such a decision is likely to raise pressure on politicians to rein in the industry. BP shares rose 1.5 per cent, or 7.25p, to 486.05p.