Shell lifted its refining-margin indicator to 42 dollars a barrel from 24 dollars in the second quarter and raised its integrated-gas output range after the ARC deal.
Shell said on Wednesday it expects third-quarter refining margins of 42 dollars a barrel, a record and well above 24 dollars in the previous quarter, Reuters reported. The company linked the jump to tighter fuel supplies after the Middle East conflict.
Brent rose after the United States and Israel attacked Iran in late February, after which Tehran effectively shut the Strait of Hormuz and struck Gulf neighbours, Reuters said. The G7 agreed last week to release diesel and crude from emergency reserves.
Shell raised its third-quarter integrated-gas production forecast to 740,000-780,000 barrels of oil equivalent a day, from 570,000-630,000, after a one-month contribution from the ARC deal. It produced 631,000 barrels of oil equivalent a day in the second quarter, compared with more than 900,000 before the Iran war. Upstream guidance was narrowed to 1.74 million-1.84 million barrels of oil equivalent a day.
RBC analysts said the higher upstream range and trading results in line with an elevated second quarter should support cash flow, Reuters reported. The figures are a company trading update, not final results.
On the same morning the FTSE 100 was down 0.4 percent at 10,498.53 by 09:48 GMT, with banks leading declines, while Shell shares rose 0.7 percent, Reuters market reporting said. British 10-year yields rose with oil prices.
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- RBC analysts said the updated production guidance should support cash flow.
- Shell's update is a company forecast, not audited quarterly results.