Shell upgrades gas production outlook and says refining profit margins to grow
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Shell has upgraded its outlook for gas production in the third quarter and said it expects profit margins from its refining operations to surge as the Iran war continues to drive big swings in energy prices.
The energy giant told investors it was forecasting integrated gas production to be between 740,000 and 780,000 barrels of oil equivalent per day (BOED) between July and September.
This is higher than the 570,000 to 630,000 BOED range it was previously expecting.
It would also mark an increase from the 631,000 BOED produced in the second quarter of 2026, which was impacted by the Middle East conflict damaging output from Qatar.
Furthermore, Shell said it was expecting a refining margin of 42 US dollars a barrel for the third quarter for its chemicals and products division, which would mark a significant leap from the 24 dollars a barrel in the second quarter.
Refining margins show the difference between what it costs to turn crude oil into fuel and the price those fuels are then sold for.
