BP expects higher upstream production in the third quarter, but weaker oil trade.

BP said that it expects to have a higher upstream production than last quarter, in a trading report released on Tuesday. Results are due on November 4. The company also noted BP's weak oil trading results.

It had earlier guided for slightly lower output upstream than the second quarter, when it produced approximately 2.3 million barrels equivalent to oil per day.

Brent crude oil averaged $69.13 a barrel in third quarter compared to $67.88 a barrel in second quarter.

BP expects to see a $100-million drop in the price it receives for its low-carbon gas business compared to the previous three month period.

BP reported that the average U.S. Gas price was $3.07 for every million British Thermal Units in the third quarter. This compares to $3.44 in the second quarter.

BP forecasted a rise in the refining margin indicator to $15.8 a barrel for the quarter, compared with $11.9 if the previous quarter. It described its trading results as average.

BP is expected to see a $300-400 million increase in its profits due to higher margins. However, this will be offset by increased compliance costs, and an unplanned shutdown at the Whiting refinery located in the United States, which was affected by Hurricane Sandy.

Flooding

BP's expected net debt to be roughly flat compared to the previous quarter of $26 billion.

(source: Reuters)