Oil giant BP said it had increased its cost reduction targets for 2009 by 50 per cent to $3 billion (Dh11bn), as it reported a halving in second quarter profits due to lower oil prices and weaker refining margins. Europe's second largest oil firm by market value said it had achieved its original 2009 target of $2bn in cuts in the first half of the year, confounding analysts who predicted the industry will be unable to roll back the cost rises. "BP may not be able to control the price of oil, but their measures to streamline the business and reduce costs shows the board is in tune with the ebbs and flows of the market," said Manoj Ladwa, senior trader at ETX Capital. Oil firms are reacting to the collapse in oil prices from a high above $147 a barrel in July last year to about $70bbl now by slashing exploration, production and refining costs, which doubled since 2004 "BP has thrown down the gauntlet to the rest of the oil supermajors, who will report their numbers over the next few days," said Richard Hunter, Head of UK Equities at Hargreaves Lansdown. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .