## BP and Shell to Reveal Lower Profits Amid Decline in Oil Refining Margin **London, 31st Oct 2023** - BP and Shell, two of the world's largest oil companies, are set to report lower profits in the third quarter of 2023 as the refining margin, a key metric in its downstream operations, continues to decline. In a statement issued by both companies, BP said that its refining margin is expected to be around $10 per barrel in the third quarter of 2023, down from $14 per barrel in the previous quarter. Shell also predicted a similar decrease, with a refining margin of $9 per barrel, compared with $12 per barrel in the second quarter. The decline in refining margin, the gap between the cost of crude oil and the price of refined products such as gasoline and diesel, is attributed to several factors. One of the key reasons is the slowdown in global economic growth, which has reduced demand for refined products. Additionally, the increasing availability of alternative fuels, such as biofuels and electric vehicles, is putting pressure on the demand for traditional refined products. The lower refining margin is expected to impact the overall profitability of BP and Shell. Both companies have already announced plans to cut costs and reduce capital expenditure in an effort to offset the impact of the declining margin. BP is expected to announce further cost-cutting measures in the coming weeks. Analysts say that the decline in refining margin is a major challenge for BP and Shell, which have traditionally relied heavily on refining as a source of profit. They expect the companies to focus on increasing their production of crude oil and natural gas as a way to offset the impact of the declining refining margin.
