Shell’s refining margins jump above $10/bl
The major’s downstream economics are almost 300pc improved year-on-year
The oil price may have soared in the first quarter of 2022, but even greater strength in products markets saw Shell’s indicative refining margin leap to $10.23/bl. Its products trading and optimisation results are also expected to be “significantly higher” than in the fourth quarter of 2021 when the firm reports Q1 results in early May. The firm’s refining margin was $6.55/bl in Q4, meaning it has boosted economics by 56pc quarter-on-quarter (see Fig.1). But, as pandemic restrictions continued to bite savagely, the Q1 2021 marker was as low as $2.65/bl, giving Shell a 286pc year-on-year improvement. Shell did not report an indicative refining margin prior to 2021. Refinery utilisation is exp
Also in this section
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources
26 March 2024
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
25 March 2024
Low carbon intensity and sizeable projects such as Johan Castberg coming onstream in late 2024 suggest a robust outlook at least until 2030
22 March 2024
And the outlook for the country’s upstream appears to have improved following legal setbacks in 2023