Shell Issues Q3 Profit Warning Over Lower Refining Margins

Group 1: Shell's Refining Segment Performance - Shell's refining margins dropped 30% in Q3 compared to the previous quarter, primarily due to a decline in global demand for refined products [1] - The indicative refining margins for Shell decreased from $7.7 per barrel in the previous quarter to $5.5 per barrel [3] - The trading results for Shell's chemicals and oil products division are expected to be lower than the prior quarter, indicating a negative impact on financial performance [3] Group 2: Industry-Wide Impact - A global slowdown in economic activities is anticipated to negatively affect the third-quarter earnings of major energy firms, including Shell [2] - The third quarter saw a 17% decline in oil prices compared to the second quarter, which is expected to adversely impact the results of many major energy companies [5] - Exxon Mobil Corporation expects a reduction in upstream profit by $600 million to $1 billion due to the slump in oil prices and declining refining margins [5] Group 3: Natural Gas Market Dynamics - Natural gas prices have risen recently, which may positively affect the third-quarter results of upstream companies [6] - Companies like EQT Corporation are increasing production in response to rising natural gas prices after previously scaling back production when prices were low [6] Group 4: Shell's LNG Segment - Shell raised its production guidance for liquefied natural gas (LNG) from 6.8-7.4 million tons to 7.3-7.4 million tons for the quarter [4] - However, the trading results for the LNG segment are expected to remain flat sequentially [4]