Shell Refining Margins Hit Record High Amid Global Fuel Crunch

Shell’s refining margins surged to $42 per barrel in the third quarter, a 75% sequential increase driven by tightening global fuel supplies. This sharp rise, paired with robust trading performance and elevated energy realizations, positions the supermajor to maintain windfall profits ahead of its full October 29 earnings release.

Money Talk·October 7, 2026·reads: 840

Shell Refining Margins Hit Record High Amid Global Fuel Crunch

Global supply constraints—compounded by restricted flows from the Middle East and Russia’s diesel export ban—have left refineries in the U.S., Europe, and Asia unable to bridge an estimated 7–8 million barrel-per-day deficit in refined products. Despite this favorable price environment, Shell’s refinery utilization dipped to between 93% and 97%, down from 102% in the second quarter, largely due to low water levels on the Rhine affecting the Rheinland facility in Germany.

While oil production is projected to decline, the company raised its natural gas output guidance to 740,000–780,000 barrels of oil equivalent per day, incorporating the acquisition of Canada’s ARC Resources. Norway’s Equinor echoed this trend, signaling that exceptional European refining margins and third-party LNG trading will push divisional profits beyond its initial $400-million guidance.