Nov 1 (Reuters) - Canada's Imperial Oil ( IMO )

reported a lower third-quarter profit on Friday as a slump in

refining margins and lower commodity prices offset higher

production.

Global oil prices dropped during the quarter on

weaker-than-expected demand from top importer China and concerns

about an oversupply in the market.

Benchmark Brent crude averaged $78.30 a barrel in

the reported quarter, nearly 9% lower than last year, while the

U.S. WTI was down 8.3%, weighing on earnings for oil and

gas companies.

Imperial Oil's ( IMO ) overall production averaged 447,000 barrels

of oil equivalent per day (boepd) in the third quarter, up from

423,000 boepd.

Meanwhile, refinery throughput volumes fell to 389,000

barrels per day (bpd) from 416,000 bpd, reflecting the impact of

turnaround activities at the Nanticoke and Strathcona

refineries, the company said.

Refinery utilization in the third quarter fell to 90% from

96%.

Imperial Oil's ( IMO ) net profit fell to C$1.24 million

($890,484.74), or C$2.33 per share, in the quarter, from C$1.6

billion, or C$2.76 per share, a year earlier.

($1 = 1.3925 Canadian dollars)