BP shares rose 3.9% on Tuesday. The company reported first-quarter profits that more than doubled compared to last year. Higher crude prices and strong oil trading helped drive these results. BP’s stock jump lifted confidence in the energy sector overall. Investors looked ahead to earnings from Exxon Mobil and Chevron later this week. This hinted at possible gains for the sector.

BP reported an underlying replacement cost profit of $3.20 billion for the quarter. This was up 132% from a year earlier and well above the $2.65 billion analysts expected. The company said its strong results were partly due to outstanding oil trading during the Middle East conflict. The conflict disrupted the Strait of Hormuz and pushed crude prices higher. This benefited large oil companies with major trading operations.

BP’s results have direct implications for ExxonMobil and Chevron. Both companies will report their first-quarter earnings on Friday. Their stocks rose in premarket trading on Tuesday. Investors saw BP’s strong trading performance as a positive sign for U.S. oil majors. These companies have similar business models and similar exposure to crude price trends.

BP’s earnings rebound comes as the company shifts its strategy. This strategy shift is a response to pressure from activist investors and recent weaker performance compared to U.S. rivals. Stronger results give management greater financial credibility. They are now moving back toward oil and gas investments after stepping back from earlier renewable energy plans.