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Shell forecasts $42 per barrel refinery margins for July to September

Shell’s trading update projects margins near $42 a barrel for July to September, up from $24 a barrel in the second quarter.

Reported · Written up by our desk · Energy

Shell expects refinery profit margins to almost double per barrel of fuel produced, citing record pump prices driven by global shortages. According to a trading update, the energy company forecast profit margins of $42 a barrel for the July to September period.

The projection would mark a sharp jump from $24 a barrel in the second quarter, and it would exceed the previous record for petroleum products of about $28 a barrel set earlier in the Russia-Ukraine war.

Shell said the margin outlook reflects the steep rise in the price of refined fuels, including diesel, relative to the cost of crude oil.

The update also pointed to a partial recovery in Gulf oil exports as part of the backdrop for the refined-fuel pricing environment.

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