BP says upstream production to rise but flags ‘weak’ oil trading

BP has said it expects to be boosted by higher oil and gas production for the third quarter but warned of weak oil trading.

It told investors on Tuesday that upstream production is now expected to be higher between July and September, compared with the previous three months.

This incorporates its oil production and operations, as well as gas production and low carbon energy coming in higher.

BP previously said upstream production would come in lower quarter-on-quarter.

The updated guidance came as average Brent crude oil prices edged higher over the third quarter.

However, BP flagged that its “oil trading result is expected to be weak” in the third quarter while gas trading was set to be “average”.

Net debt at the end of the third quarter is expected to be broadly flat compared with the end of the second quarter at around 26 billion US dollars (£19.6 billion).

The energy giant recently revealed a major cost-cutting drive, with thousands of roles to be axed as it comes under pressure to boost profits.

Chief executive Murray Auchincloss has pledged that the FTSE 100 firm would do “better for its investors” and said there was “much more to do” under its current three-year plan.

The business earlier this year unveiled a new growth strategy focused on extracting more oil and gas, pivoting away from a focus on green energy and heavily reducing spending on renewables.