bp has warned that it expects its oil trading to be "weak" in the fourth quarter of its financial year, as upstream production is set to be lower quarter-on-quarter.

The oil and gas giant stated that this is a result of "lower oil production and operations and in gas and low carbon energy".

Furthermore, it added that compared to the prior quarter, seasonally lower volumes and lower fuel margins are affecting its customer base, while "weaker realised refining margins" in the range of £100m-£300m and a higher impact from turnaround activity are also affecting this trading in the fourth quarter.

bp has also pushed back its capital markets event, scheduled to take place in New York on 11 February will now take place in London on 26 February, after its chief executive officer, Murray Auchincloss, recently underwent a planned medical procedure.

Looking ahead, the firm said that its underlying effective tax rate for the full year is now expected to be around 42% compared to the previous guidance of 40%, due to "changes in the geographical mix of profits".

It also expects other businesses and corporate underlying annual charge to be around £600m in 2024, compared to the previous guidance of between £300m-£400m, due to foreign exchange losses.

Investment director at AJ Bell, Russ Mould, said: "The warning from bp sours the recent recovery in its share price after a prolonged weak spell. Concern about the global economy puts a cloud over oil demand this year and bp's latest update continues its bad run for news, having suffered impairments and warned of weak refining margins last year.

"Investors often think bp and its peers are well-oiled machines, pumping out oil and gas with ease and doling out endless dividends and share buybacks. In reality, they operate in a high-risk environment with unpredictable earnings."

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