STORY: BP warned Friday (October 11) that its third-quarter profit will take a hit of up to $600 million.

It blamed weak refining margins due to a slowdown in global demand for fuel and lower oil trading results.

The British oil major joins other energy giants in facing a drop in profitability to multi-year lows.

It's a sharp reversal for an industry that enjoyed surging returns after the pandemic, and shows how demand has slowed.

Rival Shell on Monday warned of a slump in refining profit margins and weak oil product trading in the third quarter.

Last week, U.S. giant Exxon Mobil said a slump in oil prices was set to hit its Q3 profit.

Prices fell 17% in the third quarter on worries about the global oil demand outlook.

That was the largest quarterly decline in a year.

BP's earnings outlook also comes as CEO Murray Auchincloss scales back the firm's energy transition strategy to regain investor confidence.

Auchincloss took over in January but has struggled to stop the drop in BP's share price.

The firm has underperformed rivals so far this year as investors question its ability to generate profits under its current strategy.

BP's stock has fallen around 12% year-to-date, while shares of Shell and Exxon have gained.

The firm is due to post quarterly results on October 29.