Shell Reports Highest Quarterly Profit in Two Years Amid Middle East Conflict

Shell has announced its highest quarterly profit in two years, driven by its trading and refining operations, as Middle East conflicts disrupt global gasoline, diesel, and aviation fuel markets. According to Jin10, Shell's adjusted profit for the first quarter reached $6.92 billion, marking a nearly 25% increase year-on-year and surpassing analysts' expectations of $6.36 billion. Shell currently holds stakes in seven refineries, with four located in Europe, two in Canada, and one in the United States, contributing to a profit surge of over $2 billion in this quarter. Despite benefiting from geopolitical turmoil, Shell faced a loss of nearly $2.4 billion in hedging contracts due to volatile oil and gas prices. Additionally, Shell reported a decline in natural gas production in the first quarter, with an expected drop of at least 30% in the second quarter, reflecting the impact of conflicts on energy facilities in the Gulf region. The Middle East accounts for about 20% of Shell's total oil and gas production, with half of this output located in Oman, outside the Strait of Hormuz.