BP Q2 Earnings Preview: Lower Oil Prices To Overshadow Production Growth

We expect lower crude oil prices to weigh significantly on the company's upstream earnings growth. The average Brent crude oil spot price declined by almost 44% year-on-year during the second quarter. This is expected to result in thinner operating margins on BP's spot crude oil sales. However, higher production volume because of the contribution from recently started projects, and increased entitlements as a result of lower oil prices, coupled with the company's enhanced ability to convert grea...