
Oil major reports massive jump in profits driven by high commodity prices and global supply squeezes.
Shell reported a nearly doubled quarterly adjusted earnings of $10.8 billion, driven by record refining margins, high commodity prices, and global supply squeezes from ongoing conflicts.
AI-generated summary
Shell's profits doubled due to a global squeeze on refined products amid geopolitical conflicts.
Shell nearly doubled its quarterly year-on-year adjusted earnings to $10.8 billion and reported record refining margins, the oil major said Thursday.
Adjusted earnings, the company's measure of net profit, soared from $5.4 billion a year ago, driven by higher commodity prices and a global squeeze on refined products amid Middle East conflict and the Russia-Ukraine war.
Analysts expected the figure to be $9.92 billion, according to an LSEG-compiled consensus.
Indicative refining margins were $42 per barrel, smashing the previous record of $28.04 per barrel in the second quarter of 2022.
The company also announced a $5 billion share buyback for the next three months.
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Oil prices fell Thursday as renewed Middle East peace talks eased supply fears. Brent dropped 1.73% to $113.32 and WTI slipped 2.06% to $100.66, while analysts weigh potential Federal Reserve responses to energy-driven inflation.

Crude oil prices rose as reports suggest the U.S. may initiate military action against Iran post-midterms. Meanwhile, Israel faces a political stalemate following its election, adding further uncertainty to regional stability and energy markets.

Oil prices rose Wednesday following a Houthi ballistic missile attack on Saudi Arabia's Ras Tanura refinery. The incident heightened fears of a prolonged Middle East conflict, while political uncertainty in Israel and comments from Trump added to investor anxiety.

Oil prices fell on Tuesday as renewed diplomatic efforts involving Saudi Arabia, Turkey, Pakistan, and Iran raised hopes for a de-escalation in Middle East tensions affecting crude markets.

Brent crude prices climbed above $115 a barrel, reaching a five-month high, as market concerns intensify over potential US-Israeli strikes on Iranian energy infrastructure and ongoing regional instability in the Strait of Hormuz.

The Trump administration invoked Section 303 of the Defense Production Act to expand domestic fuel capacity as gas and diesel prices soar amid supply disruptions from the war against Iran.