In a recent market trading update, energy giant Shell projected a substantial rise in its refinery profit margins for the period between July and September. The company anticipates earning $42 for every barrel of fuel produced, a sharp increase from the $24 per barrel reported in the second quarter. This figure also surpasses the previous record of approximately $28 per barrel set in mid-2022.

Shell attributes these rising margins to the current global fuel market, which is characterized by high prices and supply constraints. The company specifically pointed to the shutdown of refineries in the Middle East and Russia—some of which were damaged during ongoing conflicts—as a primary driver for the tightening supply of refined fuels like diesel. By producing fuel at a lower cost relative to the current market price of refined products, Shell expects to capture significantly higher returns per barrel than it has in recent history.