Shell profits double as oil prices rise due to Iran war
Disruption to global supplies of oil and liquid natural gas through the Strait of Hormuz has pushed up prices.
Shell has announced a more than twofold increase in its second-quarter profits, a surge attributed to the rise in oil prices following the conflict with Iran.
For the period spanning April to June, the oil major reported profits of $9.84 billion (£7.37 billion), a significant jump from $4.26 billion recorded during the same quarter last year.
The price of oil has escalated considerably since the commencement of the US-Israel conflict with Iran, primarily due to substantial interruptions in the worldwide supply of oil and liquefied natural gas (LNG) via the Strait of Hormuz.
Wael Sawan, Shell's chief executive, commented that the company's "operational performance enabled very strong results during another quarter of severe disruption in global energy markets."
When combined with its first-quarter profits of $6.92 billion, Shell's earnings for the first half of the year show a 70% increase.
Shell, along with other major energy corporations like BP and Norway's Equinor, has experienced exceptionally high profits this year, partly due to strategic trading amidst fluctuating oil prices.
Prior to the onset of the conflict, Brent crude, the international standard for oil prices, was trading at approximately $73 per barrel.
Since then, prices have climbed to over $120 but have also receded to below $100, as uncertainty surrounds the reopening of the Strait of Hormuz.
Such substantial shifts in oil prices can broaden the difference between purchase and sale prices, typically allowing traders to secure larger profits.