Yesterday’s announcement of big production cuts from OPEC and a resulting boost for commodity prices should in theory be good news for Shell, which produced its usual teaser ahead of third quarter results.
However, fans of the business might have been metaphorically throwing popcorn at the screen as disappointing production levels, weaker refining and gas trading are expected to have a negative impact on performance.
AJ Bell’s Russ Mould said: “For all that Shell has benefited from the surge in energy markets in 2022, it is not immune from a slowdown which will impact demand for refined products.
“Shell CEO Ben van Beurden’s recent comments that governments should tax oil and gas businesses to help the poorest in society may have come from a genuine place, but also show an awareness that the industry needs to be prepared for a regulatory and political backlash given the excess profit it has generated this year.”
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