By: Reuters

BP (BP.L), opens new tab expects its upstream production to be above last quarter's, the company said in a trading update on Tuesday ahead of results due on November 4, adding that its oil trading result was weak.

It had previously guided for slightly lower upstream output than in the second quarter when it produced around 2.3 million barrels of oil equivalent per day.

Brent crude oil prices averaged $69.13 per barrel in the third quarter, compared with $67.88 per barrel in the second quarter.

BP expects the prices it received in its gas and low carbon business to take a $100 million hit compared with the previous three months.

U.S. gas prices averaged $3.07 per million British thermal units in the third quarter, compared with $3.44 per mmBtu in the second quarter, BP said.

BP guided for a rise in its refining indicator margin to $15.8 per barrel in the quarter, versus $11.9 per barrel in the previous quarter. It described its gas trading result as average.

The higher refining margins are set to add $300 million to $400 million to BP's results, although some of that will be countered by compliance costs and an unplanned outage at its U.S. Whiting refinery, which was hit by flooding.

BP's net debt is expected to be broadly flat compared with the previous quarter's $26 billion.