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Shell profits more than double to $9.8 Billion, the second highest on record as Iran war raises prices
Shell's second quarter net profit was $9.84 billion, more than doubling from the previous year. This exceeded expectations due to higher energy prices and market volatility caused by the Middle East conflict. The British major was able to offset lower volumes due to disruptions in its Qatar operations by a combination of higher?oil prices, improved liquefied gas (LNG) trading, and better chemicals margins. Shell's adjusted earnings (a measure of net income) were expected to be $8.92 billion by analysts, according a consensus provided by the company, up from $4.26 billion one year ago. The U.S./Israeli war against Iran has created market disruptions and volatility, which have provided opportunities for large trading companies such as Shell, BP, and TotalEnergies. Shell's refineries ran at 102% nameplate capacity to take advantage of the high fuel prices. This, according to Shell spokesperson, "helped to increase jet fuel production by a fifth compared to last year." Shell shares were up by 0.8% at 0937 GMT, beating a flat European energy sector. Shell, despite being one of the lowest leveraged oil companies, continues to trade below its European counterparts Eni and TotalEnergies. This is due to investor concerns about the potential growth of Shell's upstream business. Citi analysts stated. HIGHEST PROFIT EVER SINCE 2022 The second highest profits in Shell's history were achieved during the third quarter of 2012. This was when the Russian invasion of Ukraine shook global energy markets. It reported its highest operating-cash flow, including movements of working capital, since 2022. It said that it would continue to buy back shares at a pace of $3 billion per month over the next 3 months. Shell's integrated business in gas, which includes the largest LNG trading desk in the world, easily beat expectations with $2.7 billion. This is 55% higher than last year, despite Shell's gas production dropping 31% quarterly. The unit that houses its oil products trading desk, the chemicals and product division, has also exceeded expectations, with a jump from $118 to $2.9 billion. Shell predicted third-quarter integrated production of 570,000-630,000 barrels equivalent per day, after 631,000 boed during the second quarter. It also forecast LNG liquefaction volume of 7.1 to?7.7 millions tons after 7.7million tons in the previous quarter. Upstream production is expected to be between 1.68 and 1.88 million boed, compared with 1.82 million boed during the second quarter. The company expects to see higher maintenance activities for its refining and upstream assets in the third-quarter. Shell's Pearl plant, a gas-to liquids facility in Qatar, was forced to stop production in March following an attack that damaged one of its two trains. Shell said that repairs would take about a year and, in the interim, production in Canada, Nigeria, and Australia helped to make up for the capacity loss. Shell produces 550,000 barrels per day of oil-equivalent in the Middle East, and about 10% of that is linked to Qatar. Shell's net debt fell to $41.8 billion from $52.6 at the end the first quarter. Gearing, which is the debt-to equity ratio, including leases, dropped to 18.7%, from 23.2% in the previous quarter. Brent crude prices were around $97 per barrel during the third quarter. Meanwhile, benchmark European gas prices were about EUR46/megawatt-hour. Both are up significantly from a year ago.
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ArcelorMittal's CFO claims that US steel tariffs cost the company $600 million per year.
ArcelorMittal's finance chief stated on Thursday that U.S. tariffs?on imported steel?cost the steelmaker about $150 million each quarter because they affect?its?Canadian exports?. GenuinoChristino stated in an interview that "we continue to incur a target cost of approximately $600 million per year in Canada." Canada's response, in the form of tariffs, has not been sufficient to offset the impact on the Luxembourg-based company's operations there. He added, "What's also good is that we didn't lose market share. We continue to ship products to the U.S. Automotive Industry (as ArcelorMittal) is seen as the market leader with the best technology and best products." ArcelorMittal, in July 2025, estimated that the tariff impact on its core earnings would be $150 million per quarter. However, it also stated at the time that its high-valued material was hard to replace. Earlier, on Thursday, ArcelorMittal reported a'second quarter core earnings of $2.0 billion. This exceeded market expectations according to LSEG analysts. (Reporting from Gdansk by Javi Larranaga, editing by Milla Nissi-Prussak).
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Association says South Korean refiners are considering Venezuelan crude imports
An official of the Korea Petroleum Association stated that South Korea's refiners were considering importing Venezuelan crude to diversify their supply sources, as the conflict in the Middle East is disrupting shipments through the Strait of Hormuz. GS Caltex is one of the country's largest refiners. In June, it imported 110,000 barrels from Venezuela to?test its quality. The association official confirmed a?local report. Officials said that the refiner would assess whether or not the crude is suitable for their facilities, and evaluate product yields. Officials said that the other 'three refiners - HD Hyundai Oilbank SK Innovation, and 'S-Oil - also 'weigh potential crude imports out of Venezuela. Officials from the association said that refiners were looking to reduce their reliance on Middle East oil by focusing on competitive prices and stable supply. The official said that they are also looking at alternative sources of oil, including Canada and Australia. However, U.S. shale is not an option due to the small size of each individual supplier. South Korea began considering imports of Venezuelan goods after U.S. president Donald Trump called on oil companies to invest $100 billion into the nation and rebuild its energy sector. Some U.S. Some?U.S. (Reporting and editing by Ed Davies. Heejin kim)
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EDF, France's EDF is looking for investors to finance its SMR project
The French utility EDF confirmed a media report on Thursday that it hopes to attract investors for its small-modular reactor subsidiary, Nuward, by the end 2026. While SMRs have not yet been mass-produced, dozens of companies are racing to get the technology on the market. The smaller reactors are said to be a cheaper and more flexible source of power that is low-carbon than conventional nuclear plants. EDF, the state-owned company that generates 70% of France's power with its fleet of 57 nuclear reactors, has scrapped its Nuward design because it was deemed too expensive and has redesigned this project. EDF's spokesperson said that the financing strategy is designed to bring European?customers? and industrial partners together to develop an initial batch of reactors suited to their specific needs. EDF wanted to finalise its conceptual design for the reactor by the end of 2026. It aimed to have 30 small reactors operational by 2050. Nuward's nuclear reactor was designed to provide industrial users with stable baseload electricity. It is expected to generate 400 megawatts and 115 MW. The first prototype was expected to be online by 2035. EDF planned to build a reactor every year until the company has completed four units in two countries. The Financial Times had reported on Thursday that EDF hoped to launch the Nuward SMR commercially in 2029. EDF has not provided any details on Nuward's value or the amount of capital that it plans to raise. China aims to start commercial SMR production this year. This puts it ahead of Western competitors. Westinghouse is developing a prototype in Darlington (Canada) that is the most advanced Western project. Reporting by Forrest Créllin. Mark Potter (Editing)
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Shell profits more than double to $9.8 Billion, the second highest on record as Iran war raises prices
Shell's second-quarter net profit surpassed expectations by more than doubling from last year, reaching $9.84 billion. This was due to higher energy prices and increased market volatility caused by the Middle East conflict. The British major was able to offset lower sales volume due to disruptions in its Qatar operations by a combination of higher oil and gas prices and stronger LNG and oil trading. Shell's adjusted earnings (its measure of net profit) were expected to be $8.92 billion by analysts, compared to $4.26 billion the year before, according a consensus provided by the company. Shell has benefited by the disruptions in the market and the volatility caused by the U.S./Israeli war against Iran. This created more opportunities for large trading companies like Shell, BP, and TotalEnergies. Shell's refineries ran at 102% nameplate capacity to take advantage of the high fuel prices. This helped to increase jet?fuel production by a fifth compared to last year, according to Shell spokesperson. Shell shares gained 1.6% at 0821 GMT compared to a 0.4% gain in the European energy sector. HIGHEST PROFIT EVER SINCE 2022 The second highest profits in Shell's history were achieved during the first quarter of the year 2022 when the Russian invasion of Ukraine shook global energy markets. It reported its highest operating-cash flow, including movements of working capital, since 2022. It said that it would continue to buy back shares at a pace of $3 billion per month over the next 3 months. Shell's integrated business in gas, which includes the largest LNG trading desk in the world, has comfortably surpassed expectations with profits of $2.7 billion. This is 55% higher than last year, despite a 31% drop in gas production quarter-on-quarter. Shell's Chemicals and Products unit, which houses its oil product trading desk outperformed expectations as well, with a jump from $118 to $2.9 billion, a 55% increase. This is the highest quarterly profit for this division since 2021. Shell predicted third-quarter integrated production of 570,000-630,000 barrels equivalent per day, after 631,000 BOED in the previous quarter. LNG liquefaction volume was forecast to be 7.1 million to 7.7 millions tons, after 7.7 mt in the prior quarter. The company expects to produce upstream a total of 1.68 million to 1.88 millions boed. This is due to increased maintenance, after 1.82 million boed during the second quarter. Shell's Pearl plant, a gas-to liquids facility in Qatar, was forced to stop production in March following an attack that damaged one of the two trains. Shell said that repairs would take approximately a year. In the meantime, Shell's output in Canada, Nigeria, and Australia helped to make up for the capacity loss. Shell produces 550,000 barrels per day of oil equivalent in the Middle East, about 10% of which is linked to Qatar. Shell's net liability dropped from $52.6 billion to $41.8 billion by the end of first quarter 2026. Gearing, which is the debt-to equity ratio, including leases, dropped to 18.7%, from 23.2% in the last quarter. Brent crude prices were around $97 per barrel during the third quarter. Meanwhile, benchmark European gas prices were about EUR46 per Megawatt-hour. Both are up significantly from a year ago.
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Gold prices rise as the markets evaluate Fed rate stance and Middle East situation
Investors weighed the decision of the Federal Reserve to hold interest rates at the same level this month, as well as the rising tensions that are affecting the Middle East and have raised inflation concerns. The spot gold price was unchanged at $4,062.30 an ounce as of 0841 GMT. U.S. Gold Futures for August Delivery rose by 0.7% to $4,060.60. Kevin Warsh, the U.S. central bank's chief, pledged to keep inflation under control. After the decision, spot gold prices rose by about 2%. The U.S. Military said that it had struck dozens Islamic Revolutionary Guard Corps targets in Iran in response to Tehran's firing of ballistic missiles at U.S. soldiers in?Jordan, on Wednesday. Brent crude prices rose by more than $1 per barrel on Thursday. The higher oil prices are keeping the market expecting a Fed rate hike, which does not help gold, according to Giovanni Staunovo, an analyst at UBS. Staunovo said that to see gold rise, there must be an improvement in investment demand. This requires the market participants' expectations to be shifted towards rate reductions. The 'non-yielding' characteristic of bullion tends to reduce its appeal, despite it being a?hedge against inflation. According to the CME FedWatch Tool, traders are pricing in a probability of about 65% that the Fed will raise rates at its September meeting. Investors now await June U.S. Data on Personal Consumption Expenditures is due at 1230 GMT. The World Gold Council reported that India also saw an increase in unofficial inflows of gold since the government raised import tariffs earlier this year. Silver spot fell 0.03%, to 57.62 dollars per ounce. Platinum dropped 0.4%, to 1,605.20. Palladium rose by 1.8%, to $1268.56.
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France, Spain, and Greece fight wildfires in Europe's heatwave
France, Spain, and Greece all faced major wildfires Thursday, as high temperatures, parched vegetation, and powerful winds continued a summer that saw deadly fires, massive evacuations, and mounting disruption throughout Europe. Spain battled a fire in the province of Castellon, while Greece fought fires on two fronts which killed three firefighters and forced residents and tourists to flee Crete. The wind can be so strong that you cannot stand it at times. "The flames were enormous, it was scary," said Chrissa GIOUKAK, a resident of Agia Galini on Crete's south coast, where tourists and locals sought shelter in an indoor gymnasium. EUROPE IS THE FASTEST WARMING Continent Emergency crews faced a summer of heatwaves, fires and a dry Europe. Wildfires are a record high in the EU, and they have already surpassed 2025's previous record. According to Climate Monitor, Thursday's temperatures in Europe showed that it was the continent farthest away from its historical norm. The average high temperature is expected to be 25 degrees Celsius (77.5 Fahrenheit), 3.6C higher than what was normal between 1961 and 1990. Authorities in southwest France said that the fires around Bordeaux did not spread over night, and the burned area remained at 42,000 ha. The local administration did not provide any further information, but said that two people had been arrested on suspicion of setting fires. French fires forced 220,000 people to flee their homes and forced holidaymakers and residents to leave. However, 60,000 of them have been allowed back. Officials said that thousands of businesses temporarily suspended their operations are gradually reopening. The conditions are expected to improve around Bordeaux, with a?possibility for thunderstorms, increased humidity, and temperatures lower than recent peaks. A heat alert remains in place in Gironde (the department in which Bordeaux is located), and the authorities have warned that the fires are not yet out. Meteo France's?latest bulletin warned on Wednesday that the greatest danger of wildfires is now in the Mediterranean and southeastern France. The number of wildfires in France has now exceeded any other year since 2006. GALE FORCE WINDS FAN FLAMES GREECE Two firefighters were killed after they became trapped in an ensuing fire in central Crete while driving between firefronts on Wednesday. A separate fire in Peloponnese caused the death of another. Residents and tourists from Krya Vrysi, and the surrounding villages were evacuated by sea or land as the wind blew the fire out. The situation is dire. Yiannis TARTARAKIS, the mayor of Agios Vassilios in a municipality which includes several villages affected by this disaster, said that it was tragic that two firefighters had died. Strong winds prevented the deployment of firefighting aircraft, said Tartarakis. Wind is one of the extreme weather phenomena that can be caused by intense heat from wildfires. New Fires as Spain Faces "EXTREME" Crisis Spanish Prime Minister Pedro Sanchez stated that the crisis facing the nation was "extreme", and at least 10 wildfires were causing concern. Sanchez said on Wednesday that the high temperatures, low humidities, and strong winds were all contributing to the fires. He said that, speaking from Mallorca, he had written to the European Commission President Ursula von der Leyen asking her to establish a new EU Wildfire-fighting Centre?for western Mediterranean on the Balearic Island. Authorities reported on Thursday that new wildfires had erupted amid the fourth heatwave this summer in the northwest Spanish provinces Zamora and Leon, while the fire in the eastern province of Castellon continued to spread. Three separate fires in north-central Leon have forced more than 300 people from their homes. Antonio Rodrigo told reporters in Castellon late on Wednesday night that the 82-kilometre-perimeter (51-miles) of the fire had been established, but it was not secure after flames destroyed more than 9,300 acres (23,000 hectares). Rodrigo said that the overnight operation, which involved 400 firefighters, was "critical" in determining whether the situation would be stabilized within 48 hours. The weather conditions were optimal, and efforts could continue without interruption until Thursday's heat.
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Israeli strikes kill four Palestinians, including two children in Gaza amid new ceasefire
Health officials reported that Israeli strikes in the Gaza Strip killed at least four people on Thursday. Two of them were children. This occurred as'mediators' held new talks with Hamas to discuss full implementation of an American-brokered Gaza Peace Plan. A medic said that an Israeli airstrike in Khan Younis in the southern part of the enclave killed a woman and a girl aged eight. According to medics, in the Bureij Refugee Camp, located in central Gaza Strip an Israeli airstrike struck a house, killing an 18-month old child and wounding eight others. A Palestinian man riding a bicycle near a tent camp housing displaced families was targeted by an Israeli airstrike on Thursday. One person died and 10 were injured. The Israeli military claimed that the strikes were against Hamas militants without giving any further details. Gaza's health officials report that the latest deaths bring to more than 1,200 Palestinians killed by Israeli attacks, mainly civilians, since the ceasefire came into effect. Hamas doesn't usually reveal its losses. The ceasefire has stopped the full-scale combat but not Israel's near-daily strikes. Four Israeli soldiers were killed in Gaza by militants during the same time period. CAIRO TALKS Hamas leaders met in Cairo with mediators from Egypt and Qatar, to discuss the implementation of the second stage of President Donald Trump’s Gaza Plan, as presented by the Board of Peace that oversees the plan's implementation. The plan included a massive increase in humanitarian assistance, a civilian Palestinian government, Hamas disarmament, Israeli withdrawal from Gaza, and an international force deployed to maintain security. Progress has been stalled for the past few months. Hamas' official stated that the group would be coming up with a "positive" and good response. However, he didn't say if the group agreed to disarm fully, which has been a major sticking point during the last four months. Hamas demands that Israel end its attacks on Gaza and withdraw its forces. Hamas sources said that the group would "confine and store" heavy arms?under a Palestinian authority,?and not give them to Israel. Hamas has not commented on this. Israel and the Board of Peace have not confirmed whether they will accept the new Hamas position or the fate of personal or light weapons. The Board of Peace has declined to comment immediately on the Cairo negotiations. Israel wants Hamas disarm and cede all power in Gaza. Hamas disbanded a de-facto Gaza government in the last month, but kept a "caretaker" body that provided vital services to residents. Israel controls approximately 64% of Gaza's tiny coastal strip, which was bombed into ruins during Israel's two year military offensive that followed the 2023 Hamas attacks on southern Israel. Hamas controls Gaza, where nearly all its 2 million residents live in a tiny sliver on the coast. They are mostly living in tents, or in damaged buildings, and face dire living conditions. (Reporting and editing by Gareth Jones, Kate Mayberry, and Nidal al Mughrabi)
Singapore's oil products stocks fall to their lowest level since mid-June
Singapore's oil product inventories, Asia’s main fuel trading hub, continued to decline as both residual fuel and middle distilates inventories fell, according to government data released on Thursday.
Enterprise Singapore's data shows that total?onshore?oil products stocks were around 37.95 millions barrels during the week ending July 29. This compares to 39.64million barrels one week earlier.
The Middle East conflict has continued to engulf the oil and product markets. Shipping risks in both the Bab el-Mandeb Strait and the Hormuz Strait remain high in the short-term. This could lead to a reduction in global refinery 'runs' and production.
MIDDLE DISTRILLATES, RESIDUAL FUEL FELT
The Middle Distillates Inventory fell for the second week in a row, to its lowest level in over two months?of about 7.7 million barrels.
The net exports of jet fuel, kerosene and gasoil increased by two to three times compared with a week ago.
Inflows of diesel and gasoil cargo were mostly from South Korea and India, and exports went to New Zealand, Malaysia and Vietnam.
Preliminary shiptracking data showed that India's July diesel loadings into Singapore were at their lowest level for five months. More shipments are expected to arrive in the West for now. Preliminary shiptracking data showed that more South Korea- and China's origin barrels will be arriving in the next couple of weeks.
The data revealed that despite an increase in net imports the level of residual fuel oil inventories fell to a six week low. They were down 6.8% on a week-to-week basis at 18,13 million barrels (2,86 million tons).
Total fuel oil imports increased 12.1%, to about 971 000 tons. Saudi Arabia was the largest supplier of fuel oil in the past week with imports totaling nearly 160,000 tonnes. The UAE came second at 90,000 ton.
Total fuel oil exports to Singapore tanks dropped 57.4%, reaching about 150,000 tonnes. Bangladesh and Vietnam became the main destinations for?the week.
Singapore's fuel markets remain steeply backwardated in the front months. This means that immediate prices are higher than future prices.
LIGHTS?RISE
The inventories of light distillate, including naphtha, gasoline and other liquids, increased to 12,084 million barrels for the first week in July after dropping for four consecutive weeks. This was due to the fact that imports of naphtha, which totaled 255,000 metric tonnes (2.3 millions barrels), far outweighed exports, which only amounted to 2,800 tons.
Malaysia, with around 35,000 tonnes, was the second largest source of naphtha, after Russia.
Singapore's gasoline imports totaled?about 194,000 tonnes (1.6million barrels), and exports reached?roughly 438,000 tons. This makes the city-state an?net exporter? of about 244,000 tons.
Indonesia led the way with about 131,000 tonnes, followed by Australia with nearly 117,000. Taiwan led the gasoline inflows at almost 60,000 tons. Saudi Arabia was second at around 38,000 tons. (Reporting and editing by David Holmes, Trixie Yap, Jeslyn lerh and Mohi narayan)
(source: Reuters)