Shell's earnings skyrocket to $6.2bn backed by resurging oil prices

Oil and gas company Shell has reported strong profits thanks to the recent rise in oil prices. The company revealed earnings of $6.2 billion between July and September, a significant increase from the previous quarter. However, profits were lower than the same period last year, when the invasion of Ukraine by Russia caused a spike in oil and gas prices. Despite current oil prices being lower than that period, they have recently experienced an upward trend. This is primarily due to the efforts of the Opec+ group, which consists of oil-producing nations that have reduced output to support the market. The World Bank recently warned that conflict in the Middle East could lead to crude oil prices reaching $150 per barrel, compared to the current $85. Shell cited higher oil prices, increased production of oil and gas, as well as improved earnings from refining and gas trading as factors contributing to its 23% rise in earnings this quarter. Although energy firms saw lower profits earlier this year due to the fluctuation of crude oil prices, the cost of oil has been increasing again since the production cuts implemented during the summer. These cuts were driven by concerns about weakened global demand, with Saudi Arabia and Russia leading the implementations. Moscow has also attributed the lower Russian oil cap, which was put in place following the invasion of Ukraine, to Western "interference with market dynamics".