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Copper Prices Hit Record Highs as Metals Rally Gains Momentum on Geopolitical Tensions 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Asian Stocks Waver as Trump Signals Fed Pick, Shutdown Deal and Tech Earnings Stir Markets 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
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.
