Oct 29 (Reuters) - Phillips 66 posted a fall in

quarterly profit on Tuesday, hurt by a slump in margins due to

lackluster fuel demand.

The Houston-based refiner reported a net income of $346

million, or 82 cents per share, in the third quarter, compared

with $2.1 billion, or $4.69 per share, a year earlier.

Refiners globally have seen a drop in profitability on soft

consumer and industrial demand, especially in China, because of

slowing economic growth and rising penetration of electric

vehicles.

U.S. refinery margins, measured by the 3-2-1 crack spread

, dipped to $14.28 in mid-September, the lowest since

early 2021, on lackluster fuel demand.

Energy majors such as Exxon Mobil ( XOM ), BP and

Shell said earlier this month they expect weaker

refining margins to weigh on their earnings in the third

quarter.

However, Phillips 66's third-quarter adjusted profit came in

at $2.04 per share, well above analysts' average estimate of

$1.66, according to data compiled by LSEG, partly aided by a

stronger performance of its chemicals segment.