Shell says refining margin will jump to $42 a barrel, pointing to a bumper quarter

Shell expects its indicative refining margin to rise to $42 a barrel, nearly double the prior quarter, after western European heatwaves lowered water levels on the Rhine and left fuel markets tight. In a trading update reported by City AM, Shell said the margin would move from $24 to $42 as diesel and other fuel prices remain high. The higher spread between crude costs and fuel values suggests a strong quarter for its products division. Shell is due to publish full third-quarter results on October 29. The update also points to about $2.5 billion in expected cash outflows from German emissions certificate payments and softer chemicals performance. Heat and low river levels disrupted shipping, prompting Shell to cut processing at its Rheinland refinery in Germany to 93%–97% utilization.