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BP beats third-quarter estimates and swings back to profit on improving oil demand

A BP company logo is displayed on a fuel pump on the forecourt of a gas station operated by BP Plc in London, U.K.

Chris Ratcliffe | Bloomberg | Getty Images

LONDON — Energy giant BP reported stronger-than-anticipated third-quarter net profit on Tuesday, benefitting from the absence of significant exploration write-offs.

Third-quarter underlying replacement cost profit, used as a proxy for net profit, came in at $100 million. That compared with a loss of $6.7 billion in the second quarter.

BP’s results come as energy market sentiment remains subdued, with an upsurge in global coronavirus cases hampering the prospects of oil demand growth.

A wave of new Covid-19 infections has prompted some countries to impose fresh restrictions as winter looms.

International benchmark Brent crude futures traded $40.86 a barrel on Tuesday morning, up around 1% for the session, while U.S. West Texas Intermediate futures stood at $38.94, up more than 0.9%.

Both contracts slipped over 3% in the previous session.

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