Shell sees record Q3 refining margins, lifts gas production estimate

(Sharecast News) - Shell on Tuesday said third‑quarter refining margins were set to hit a record high, with the oil giant expecting margins to jump to $42 a barrel, up sharply from $24 in the previous quarter. The company also lifted its integrated gas production forecast for the period to between 740,000 and 780,000 barrels of oil equivalent per day, compared with a prior estimate of 570,000 to 630,000 boe/d.

Results from its gas and oil products trading businesses were likely to be broadly in line with the previous quarter, when strong trading helped deliver its second‑highest quarterly profit on record.

Oil majors have benefited from the surge in crude prices following the US and Israeli war on Iran, which has disrupted supply routes and pushed Brent higher.

In a trading update, Shell added that liquefied natural gas output is expected to come in at 7.2m to 7.6m tonnes, little changed from earlier guidance and close to second‑quarter production of 7.7m tonnes.

Upstream production guidance was narrowed to 1.74m-1.84m boe/d.

Reporting by Frank Prenesti for Sharecast.com