LONDON (AFP) - Energy giant BP on Tuesday said it would slash investment this year as tumbling oil prices cut into the group's profits, mirroring a situation across the sector.

British company BP said spending in 2015 was expected to total about US$20 billion (S$27 billion), down from a previous guidance of US$24-26 billion.

"We have now entered a new and challenging phase of low oil prices through the near and medium term," BP chief executive Bob Dudley said in a company statement.

"Our focus must now be on resetting BP: managing and rebalancing our capital programme and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations."

Crude oil prices have halved over the last seven months to be trading at about US$50 a barrel, though prices have rallied somewhat over the past four days.