LONDON (Reuters) – Royal Dutch Shell expects its fuel sales to fall or at best be broadly steady for the first quarter as some coronavirus restrictions ease, the world’s biggest fuel retailer said in a trading update on Wednesday.

Shell said it saw refined oil product sales at 3.7-4.7 million barrels per day (bpd) for the first quarter compared with just under 4.8 million bpd in the last quarter of 2020.

Shell’s refining margins have improved to around $2.6 per barrel in the quarter from $1.6 in the previous quarter.

In liquefied natural gas business (LNG) trading, where it is a global leader, Shell said it expected results to be “significantly below average”.

Shell sees its first-quarter LNG production at 7.8-8.4 million tonnes, compared with 8.2 million in the previous quarter.

Total upstream production was expected to rise to 2.4-2.48 million barrel of oil equivalent from 2.37 million in the fourth quarter of 2020.

An extreme cold snap in Texas is expected to have shrunk its output by 10,000-20,000 bpd and to shave up to $200 million from its adjusted first-quarter earnings, due to be reported on April 29.

Benchmark crude prices in the first quarter rose around 24% and were trading near $63 a barrel on Wednesday.

Reporting by Shadia Nasralla; Editing by Andrew Heavens

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/article/us-shell-outlook/shell-expects-at-best-steady-fuel-sales-for-first-quarter-idUSKBN2BU0LH

You May Also Like

Aussie jumps as inflation data sparks rate hike talk, yen becalmed before BOJ

The Aussie dollar jumped on Wednesday as surprisingly strong inflation data raised the possibility of sooner-than-planned rate hikes, while the yen was calm as Japan’s central bank is seen retaining its easy monetary policy stance later this week.

India’s coronavirus infections cross 18 million as gravediggers work round the clock

India’s total COVID-19 cases passed 18 million on Thursday after another world…

After nearly doubling profits, Amazon is hoping that pandemic habits will stick

Throughout the first 3 months of 2020, Amazon proceeded to benefit from…