Shell Flags Weak Oil-Trading Performance

Core Viewpoint - Shell anticipates higher oil and gas production but warns of a weak oil trading performance impacting earnings, amid declining prices [1] Group 1: Production and Trading Performance - Shell expects its fourth-quarter trading performance to be significantly lower than the previous quarter, leading to an adjusted loss in its chemicals-and-products division, down from a profit of $550 million in the prior quarter [2] - Analysts predict a 10% downward revision to Shell's net income expectations due to poor trading performance, contrasting with an improved performance in the previous quarter [6] Group 2: Market Conditions and Price Trends - The oil market is facing challenges with U.S. intervention in Venezuela potentially increasing supply in an already saturated market, contributing to weaker prices [4] - Despite geopolitical uncertainties, Brent crude prices remain just above $60 a barrel, and ExxonMobil has also indicated that falling oil and gas prices will negatively impact earnings [5] Group 3: Shareholder Returns and Financial Outlook - Shell's regular $3.5 billion quarterly share buyback is under scrutiny as analysts question whether management will maintain this amid a weak quarter, given the company's strong balance sheet [3] - Shell has narrowed its LNG production guidance for the fourth quarter to between 7.5 million and 7.9 million metric tons, tightening previous guidance [7]