BP sees weaker Q4 refining margins, oil trading

* Says high stock levels will contribute to weakness

* Lack of market volatility will also be a factor

LONDON, Nov 2 (BestGrowthStock) – BP Plc (BP.L: ) expects a seasonal
decline in refining margins in the fourth quarter, the major
said on Tuesday, adding that trading contributions would remain
weak because of a stable oil price environment.

“We expect a seasonal decline in refining margins and
marketing volumes in the fourth quarter, which is likely to be
exacerbated by high stock levels,” BP said.

“The supply and trading contribution is expected to remain
weak in the fourth quarter due to continued lack of volatility
in the market. BP’s refinery turnaround activities are expected
to be higher in the fourth quarter than in the third.”

BP last month announced a restructuring of its trading arm
to cut costs and focus on growth markets such as China and India
to turn around falling profits. [ID:nSGE6970BH]

For a story on BP’s results click on [ID:nLDE6A109C]

BP said its refining throughputs in the third quarter rose
by 100,000 barrels per day from a year ago and were flat
quarter-on-quarter at 2.429 million bpd, having risen in the
United States as well as Europe and the rest of the world.

Trading and supply sales fell to 2.28 million bpd from 2.38
million bpd a year ago and 2.54 million bpd in the previous
quarter. Nine months trading and supply sales were slightly
higher at 2.48 million bpd versus 2.31 million.

The quarter also saw a decrease in BP’s average indicator
refining margins to $4.53 a barrel from $5.49 last quarter, but
better than the $3.42 a barrel seen a year ago.

The strongest indicator margins were observed on U.S. West
Coast of $7.24 with the weakest being Singapore at $2.34 a
barrel and Europe being in the middle at $2.59-$2.70.

But it also said that its actual refining margins as opposed
to indicator margins improved in the first nine months as a
result of upgrades which allowed BP to have refinery utilisation
rates above the industry’s average.
(Reporting by Isabel Coles; editing by James Jukwey)

BP sees weaker Q4 refining margins, oil trading