Oil Giant BP Faces Profit Squeeze Amidst Market Slump

BP has announced that its third-quarter profit will be reduced due to a decline in refining margins, with losses projected between $400 million to $600 million. The downturn reflects a broader industry trend, as global oil refiners experience multi-year low profitability and declining oil prices impact major players like Shell and Exxon Mobil.

BP has reported an expected drop in its third-quarter profit by $400 million to $600 million, attributable to falling refining margins. The British oil giant identified this downtrend in a recent statement.

The global oil refining industry is currently witnessing a marked downturn following the previously surging post-pandemic returns. Rival company Shell, along with U.S. major Exxon Mobil, echoed these concerns, highlighting slumps in refining profits and weak trading results for the third quarter.

Oil prices tumbled by 17% over the quarter, marking the steepest drop in a year and raising alarm about global demand. As a consequence, Brent futures settled at $71.77 per barrel, and BP's production and operations unit's performance is expected to suffer a hit between $100 million to $300 million.

(With inputs from agencies.)