Shell Plc has categorically denied rumors about a possible takeover of its London competitor BP Plc.

The BP share temporarily shot up by as much as ten percent in New York before giving up most of the gains and recently recorded a 1.2 percent increase. The sudden surge shows how nervous and receptive the market is to possible consolidation scenarios in the European oil industry.

Background of the speculation is BP's ongoing weakness. The stock has lagged for years, and investor confidence was further shaken by a poorly received strategy update in February. CEO Murray Auchincloss announced a realignment focusing on increased oil and gas production and improved capital returns at that time. However, both analysts and shareholders remain skeptical, especially since activist investor Elliott Investment Management has already intervened.

According to insider information, Shell internally examined the potential advantages of acquiring BP in May, but according to Bloomberg, intended to act only if prices continued to fall along with declining oil prices. The rumors that have now emerged seem to have prematurely brought these considerations to the surface.

What remains is an industry in upheaval, where strategic weakness quickly becomes takeover speculation—whether justified or not.