Big Oil Is Poised to Report Blockbuster Refining Earnings
(Bloomberg) -- More evidence has emerged that Big Oil’s second-quarter will be dominated by blockbuster refining profits.
Shell Plc already flagged last week a potential $1 billion gain from soaring margins at the unit that processes crude into fuels and chemicals. On Friday, TotalEnergies SE said its refining business had an “exceptional” performance in the period.
The French giant said the variable cost margin for European refining -- which represents the average earnings per barrel at its plants across the region -- was a staggering $145.70 in the second quarter, more than three times higher than the prior period.
A shortage of refining capacity, compounded by a reduction in exports of Russian oil products since the invasion of Ukraine, have pushed road fuel prices to record levels in many countries. The trend has been good for the oil majors after several tough years, but could backfire as rampant inflation forces central banks to raise interest rates and prompts some governments to consider windfall taxes.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Europe Defense Spending Lifts Stocks, Hurts Bonds: Markets Wrap

Oil Holds Declines on Prospect of Higher Russia, Iraq Supplies

Canada’s Conservative Leader Pitches Major Natural-Resource Revamp to Counter Trump

EPA Terminates Nearly 400 Workers Amid US Government Purge

Trump to Create White House Council to Drive Energy Dominance

Oil Steadies as Trump’s Reciprocal Tariffs Add to Trade Tensions

Isuzu to Build Car Plant in South Carolina as Trump Tariffs Loom

SoftBank Weighs Debt-Heavy Financing in $500 Billion AI Push

Stocks Climb as Traders Brush Aside Tariff Threats: Markets Wrap
