BP Expects Higher Q2 Oil Output Despite Price Declines

BP announced that its second-quarter financial results will be negatively affected by lower crude oil and gas prices, despite an increase in upstream production. Crude oil prices fell to an average of $67.88 per barrel in Q2, down from $75.73 in Q1, due to OPEC+ gradually lifting production cuts. BP expects a decrease in realized prices to reduce profits by $0.7 to $1.1 billion across its oil production and gas segments, while refining margins are forecast to improve significantly, rising from $15.2 to $21.1 per barrel. The company anticipates upstream oil and gas production to exceed the first quarter's average of approximately 2.24 million barrels of oil equivalent per day, driven mainly by its U.S. onshore operations. BP's net debt is expected to be slightly below the previous quarter's $27 billion. Overall, despite the pricing headwinds, stronger refining margins and higher production volumes are expected to partially offset the impact.