LONDON: BP said a drop in refining margins would reduce its third-quarter profit by $400 million to $600 million from the previous three months.

The British group's oil trading result is also expected to be weak, it said in a statement.

Global oil refiners are facing a drop in profitability to multi-year lows, marking a downturn for an industry that had enjoyed surging returns post-pandemic and underlining the extent of the current slowdown in global demand.

Rival Shell on Monday also warned of slump in refining profit margins and weak oil product trading in the third quarter.

While U.S. oil major Exxon Mobil said last weak that slump in oil prices was set to hit its third-quarter profit.

Oil prices fell by 17% in the third quarter, the largest quarterly decline in a year, on worries about the global oil demand outlook. Brent futures settled at $71.77 a barrel on the last trading day of the quarter.

BP said in the oil production and operations unit, third-quarter result will be impacted by $100 million to $300 million.

 - Reuters