Shell refineries forecast to make double the profit from every barrel of fuel

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Published: 2026-10-07T08:41:58.146Z • Permanent link

Record prices caused by global shortages amid shutdown of war-damaged refineries in Middle East and Russia have led to Shell's refineries being forecast to make almost double the profit from every barrel of fuel produced. According to a report by the International Energy Agency, the global oil supply has been severely impacted by the ongoing conflict in Ukraine and the resulting closures of refineries in countries such as Saudi Arabia and Iran. The resulting shortage has driven up prices, with Brent crude oil reaching a seven-year high in recent months.

The crisis is particularly acute in the Middle East, where several major refineries have been forced to shut down due to damage from the war. The Abu Dhabi National Oil Company's (ADNOC) Al-Dhahran refinery in Saudi Arabia, for example, was forced to shut down in April due to damage from airstrikes. Similarly, the Iran Oil Bourse's (IOB) refinery in the country's oil-producing region was also forced to shut down in April due to the ongoing conflict. These closures have resulted in a significant shortage of fuel, leading to record prices and putting pressure on Shell's refineries to increase production.

Industry insiders are warning that the shortage is likely to continue for several months, with some predicting that prices could reach even higher levels. "The situation is dire," said Mark Cutler, a senior energy analyst at the International Energy Agency. "We're seeing a perfect storm of supply chain disruptions, sanctions, and conflict that's pushing oil prices to unsustainable levels." The shortage has significant implications for Shell, which is one of the largest oil refiners in the world. The company's refineries are expected to make almost double the profit from every barrel of fuel produced, thanks to the high prices driving demand.

The impact of the shortage on Shell's refineries is significant, with the company's profits expected to increase substantially in the coming months. However, the shortage also has broader implications for the global energy market, with prices driving demand for alternative energy sources. Research communities are already starting to take notice, with some institutions predicting that the shortage will drive investment in renewable energy. "We're seeing a shift in the market towards cleaner, more sustainable energy sources," said Dr. Maria Rodriguez, a senior researcher at the University of California, Berkeley. "The shortage is driving demand for alternatives, and we expect to see significant investment in the coming months.

The shortage also has significant implications for the global economy, with prices driving inflation and increasing costs for consumers. Companies such as Volkswagen and BMW have already started to feel the pinch, with some predicting that the shortage will lead to increased costs for consumers. "The shortage is a major concern for us," said Ralf Speth, the CEO of Volkswagen. "We're already seeing increased costs for our customers, and we expect this to continue in the coming months." The shortage is also having a significant impact on the global energy market, with prices driving demand for alternative energy sources.

The shortage is not an isolated event, but rather part of a larger pattern of supply chain disruptions and conflicts that have been affecting the global energy market in recent years. The ongoing conflict in Ukraine, for example, has driven up prices and disrupted supply chains. Similarly, the COVID-19 pandemic has had a significant impact on the global energy market, with supply chain disruptions and shortages driving up prices. The shortage is also part of a broader trend towards increased global demand for energy, driven by population growth and economic development.