BP warns of weakening refinery margins in its third quarter

BP (BP) issues warnings about weakening oil refining and production margins for its third quarter, a period where crude oil (CL=F, BZ=F) prices fell 17%. Market Domination co-hosts Julie Hyman and Josh Lipton report on these developments.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Luke Carberry Mogan.

Video Transcript

First up a look at shares of BP, the company warning of weak refining margins and broadly flat upstream production in the third quarter.

The uh basically the bottom line here, net debt was likely to have risen in the third quarter because of those lower refining margins and debt has been trending in the opposite direction.

So the fact that it is rising here is something that investors do not seem terribly happy about.

The sort of underlying oil story is that Brent crude prices fell 17% in the third quarter.

So this is something that BP and a lot of the other oil companies are going to be facing when they talk about these results.

Yeah, to your point, you noted in the statement that a barrel of Brent North Sea crude averaged about 8034 in Q three that was down about five bucks from the previous quarter.

And then of course, we talked about oil, I mean demand impacted by China weakness saw the spike in October on on geopolitical tensions then bit of a breather again just looking at Brent back to 7897 right here.

Yeah.

And by the way, this is not the full results from the company.

We get those on October 29th, uh, Exxonmobil, by the way, reporting on November 1st.

All right.