Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Trump, Xi Focus on Trade and AI at White House Summit 
South Korea Tax Windfall Could Top 50 Trillion Won on Chip Boom 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Europe’s AI Data Centre Boom Strengthens Case for Nuclear Power 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
ECB May Stop Rate Hikes After December, Capital Economics Says 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Trump to Ease U.S. Fuel-Economy Standards 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
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Shell’s Refining Margins Decline Sharply in Q3 2024
Shell announced a sharp decline in refining profit margins for the third quarter of 2024, primarily driven by weaker global demand. In its trading update before the Oct. 31 quarterly results, Shell revealed that refining margins fell by nearly 30% to $5.5 per barrel, down from $7.7 per barrel in Q2. The drop is part of a broader market trend, with refining margins facing pressure due to sluggish economic activity, particularly in China, and the commissioning of new refineries.
Trading Results & Chemicals Division
The company also anticipates lower trading results for its chemicals and oil products division compared to the second quarter, reflecting the overall downturn in market demand. These lower margins align with the ongoing challenges facing the global refining market.
LNG Production and Upstream Outlook Upgraded
Despite these challenges, Shell, the world's leading liquefied natural gas (LNG) trader, increased its Q3 LNG production forecast. The new guidance ranges from 7.3 to 7.7 million metric tons, an upward revision from the previous 6.8 to 7.4 million-ton estimate. LNG trading performance is expected to be consistent with Q2 results. Furthermore, Shell raised its upstream oil and gas production outlook to 1.74 to 1.84 million barrels of oil equivalent per day (boed), from a previous 1.58 to 1.78 million boed.
Global Oil Price Slump
This update from Shell comes shortly after Exxon Mobil warned of Q3 financial challenges due to declining oil prices. Brent crude prices fell by 17% in Q3, marking the steepest quarterly decline in a year, ending at $71.77 per barrel amid concerns over global oil demand.
Conclusion
Shell's Q3 trading update reflects the challenges posed by weak refining margins and lower trading earnings in oil and chemicals. However, the upward revision in LNG production and upstream output outlook presents a positive note amidst the market's volatility.
