Despite the record production increases, BP profits are set to be slashed during the quarter as slowing demand for oil and gas results in weak crude prices. "We anticipate average liquids realisations for the group will be around $US6 per barrel lower than in the third quarter 2001," the company said. BP will no doubt be hoping for a spike in oil prices following OPEC's decision to cut oil production.

BP, which will publish its full quarterly result for last three months of 2001 on 12 February, added refining margins have declined throughout the quarter, particularly in the US and Europe, and current margins are "very weak". As a result, throughput at BP's refineries in Europe and the US Gulf Coast has been reduced.