China’s Foreign Exchange Reserves Beat Forecasts with $28.2 Billion Rise in September 
Major Gaps in Home Loan Data Raise Concerns Over Discriminatory Lending and Accountability 
Michael Saylor Describes Bitcoin as "Lightning in a Bottle" – What It Means for BTC's Future 
India-U.S. Agreement Strengthens Critical Minerals Supply Chain for EVs and Clean Energy 
Japan Warns Against Speculative Forex Trading as Yen Falls Below 149 Per Dollar 
U.S. Services Sector Hits 1.5-Year High in September as Employment Weakens 
German Retail Sector Experiences Decline in Business Climate – Ifo Survey 
Goldman Sachs Lowers U.S. Recession Odds to 15% Following Strong Job Growth 
U.S. Inflation, Fed Meeting, Earnings Season, and Oil Prices: A Market Outlook for the Week 
Samsung's Q3 Profits Expected to Jump 4X on Chip Demand, but AI Chip Lag Raises Concerns 
Higher-than-Expected September Inflation Delays Turkey’s Anticipated Interest Rate Cuts 
China Pauses Gold Buying Amidst Price Surge for Fifth Month 
Wall Street Reconsiders Fed’s Half-Point Rate Cut as Inflation Concerns Resurface 
Lucid Air Grand Touring Joins Dubai Police Fleet, Expanding UAE’s Push for Green Vehicles 
Activist Investor Starboard Value Takes $1B Stake in Pfizer, Calls for Strategic Overhaul 
Rio Tinto Explores Potential $6 Billion Acquisition of Arcadium Lithium Amid Market Slump 
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.
