Short term investors may want to avoid BP uncertainty

Following today's announcement from BP that profits are up six per cent, Graham Spooner, Investment Adviser at The Share Centre, comments on what this means for investors: "Today's BP results reflect how the company is benefiting from the rise in oil prices. However, despite reaching record levels, the price of oil is still volatile and therefore may catch out investors trying to make a fast buck. Investing in BP is probably not for those looking to make a profit in the short term.

"BP has around a fifth of its oil reserves in Russia and the current uncertainty with its Russian partners and in-fighting by oligarchs means that low risk investors may want to wait on the sidelines before considering BP as an investment.

"Overall, oil prices are likely to continue to rise in the medium to long term. Therefore, we still view BP as a good long term investment and would advise current BP shareholders, who are looking at the bigger picture, to stick with the company."