BP Faces Up to $3 Billion Hit Due to Weak Refining Margins

The oil giant warns of significant financial impact from lower demand and operational scale-backs in Germany.

BP expects a $500 million to $700 million reduction in earnings due to weak refining margins.
A $2 billion writedown is anticipated from scaling back operations at the Gelsenkirchen refinery in Germany.
BP shares dropped over 3% following the financial update.
The company’s oil trading performance is projected to be weak, with gas trading results remaining average.
Upstream production is expected to remain flat for the quarter.