ECB Rate Hike in Focus as Oil Tops $100 
Oil Prices Hold Near Highs as U.S.-Iran Conflict Escalates 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
Iran Threatens Gulf Energy Assets as U.S. Tensions Escalate 
U.S. Stock Futures Steady as Oil Tops $100 Ahead of Inflation Data 
China Inflation Accelerates in August as CPI, PPI Rise 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Gold Prices Rebound as Dollar Weakens, Fed Decision Looms 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
German Inflation Accelerates to 2.9% in August 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
Gold Prices Rise as Yen Rally Weakens Dollar 
Fitch Eyes Japan Budget for Fiscal Discipline 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Asian Stocks Mixed as Korean Chipmakers Rally 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
Norway Core Inflation Rises to 3% in August 
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Shell’s Refining Margins Decline Sharply in Q3 2024
Shell announced a sharp decline in refining profit margins for the third quarter of 2024, primarily driven by weaker global demand. In its trading update before the Oct. 31 quarterly results, Shell revealed that refining margins fell by nearly 30% to $5.5 per barrel, down from $7.7 per barrel in Q2. The drop is part of a broader market trend, with refining margins facing pressure due to sluggish economic activity, particularly in China, and the commissioning of new refineries.
Trading Results & Chemicals Division
The company also anticipates lower trading results for its chemicals and oil products division compared to the second quarter, reflecting the overall downturn in market demand. These lower margins align with the ongoing challenges facing the global refining market.
LNG Production and Upstream Outlook Upgraded
Despite these challenges, Shell, the world's leading liquefied natural gas (LNG) trader, increased its Q3 LNG production forecast. The new guidance ranges from 7.3 to 7.7 million metric tons, an upward revision from the previous 6.8 to 7.4 million-ton estimate. LNG trading performance is expected to be consistent with Q2 results. Furthermore, Shell raised its upstream oil and gas production outlook to 1.74 to 1.84 million barrels of oil equivalent per day (boed), from a previous 1.58 to 1.78 million boed.
Global Oil Price Slump
This update from Shell comes shortly after Exxon Mobil warned of Q3 financial challenges due to declining oil prices. Brent crude prices fell by 17% in Q3, marking the steepest quarterly decline in a year, ending at $71.77 per barrel amid concerns over global oil demand.
Conclusion
Shell's Q3 trading update reflects the challenges posed by weak refining margins and lower trading earnings in oil and chemicals. However, the upward revision in LNG production and upstream output outlook presents a positive note amidst the market's volatility.
