Shell reports weaker trading as oil price falls
Energy giant Shell revealed a weaker performance from its trading business in the latest quarter amid a drop in crude oil prices.
Shares in the company dipped as a result, as it also pointed towards a loss in its troubled chemicals and products division.
The FTSE 100 firm said adjusted earnings for the division are not expected to break even over the final quarter of the year.
Earnings were dragged by weaker chemical margins, which slid to $140 a metric ton from $160 in the third quarter, as well as being impacted by a tax adjustment.
Shell also reported that results for its trading business are set to have been “significantly lower” than the previous quarter.
The drop comes amid a recent drop in crude prices, with Brent crude having fallen by 18 per cent over the past year. Energy groups also face an uncertain backdrop in the wake of events in Venezuela. The company is set to unveil its full results for 2025 in an update early next month.
Russ Mould, investment director at AJ Bell, said: “The weak showing for the oil trading business reflects lower crude prices and that’s a trend which has been exacerbated by recent developments in Venezuela, on the basis US involvement might help unlock the potential in its huge oil reserves."