Shell expects record refining margins of $42 per barrel in Q3
by@Reuters
Summary
Shell announced that it expects record refining margins to reach $42 per barrel in the third quarter, up from $24 in the previous quarter, largely due to the tightening of fuel supplies caused by the ongoing conflict in the Middle East. Following attacks on Iran by the US and Israel, global fuel prices surged, prompting the G7 countries to agree on releasing diesel and crude oil from emergency reserves to mitigate the rising costs. With these geopolitical tensions driving energy prices higher, major oil companies like Shell are poised to capitalize on substantial revenue increases from their operations.
Tokens
$SHEL
Analysis
RBC: RBC is a global financial services firm whose analysts provide research and commentary on energy sector companies. RBC analysts noted that Shell's higher production guidance and trading results should support stronger cash flow generation relative to market expectations. Shell: Shell is a major integrated oil and gas company involved in exploration, production, refining, trading, and marketing of energy products. In this news, Shell reports sharply higher third-quarter refining margins driven by supply disruptions from the Iran conflict, alongside upward revisions to its integrated gas production guidance following the ARC Resources acquisition. Shadia Nasralla: Shadia Nasralla is a Reuters journalist in London specializing in energy and corporate reporting. Nasralla contributed to the coverage of Shell's expected record refining margins amid the Iran-related supply tightness. Stephanie Kelly: Stephanie Kelly is a Reuters journalist covering energy markets and commodities from London. Kelly helped report on the G7 response to rising fuel prices and Shell's production forecast updates. Yadarisa Shabong: Yadarisa Shabong is a Reuters journalist based in Bengaluru who covers corporate and energy news. Shabong is one of the reporters who filed this story on Shell's quarterly outlook and the impact of Middle East developments on fuel markets. Sector Outlook: Major oil companies are positioned to benefit from higher revenues as energy prices rise due to the ongoing Middle East conflict. Policy Response: G7 countries recently agreed to release diesel and crude oil stocks from emergency reserves to address the price surge. Geopolitical Impact: Disruptions from the US and Israel actions against Iran have tightened global fuel supplies and elevated energy prices.
Categories
macropolitics