After BP's third quarter profit figures, which beat all expectations by analysts and performed much better than expected, were made public, oil stocks saw a definite surge which led to a much welcome boom in the European market.
BP, Europe's second-largest oil firm, surprised everyone on Tuesday as it posted profits which, although less then last year's figure of $8.0 Billion, were definitely higher than the second quarter profits of $4.4 Billion, and now stood firm at $5.3 Billion.
"The fall in earnings was well trailed, but the numbers nonetheless have obliterated market forecasts, as evidenced by the spike in the share price in early trade", said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.
BP's better than expected profit figures not only gave investors of the firm a reason to smile, but also kicked oil prices considerably. As a result, the European market rose to height which it had not seen for the past few month, and dominated the world economies where major Asian markets saw a drop of 2% and more and the US indexes opened flat.