Shell upgrades assets value by up to 4.5 bln
Refining margins nearly triple quarter on quarter
Production dips due to maintenance

LONDON, July 7 Reuters Shell said on Thursday said it would reverse up to 4.5 billion in writedowns on oil and gas assets after it raised its energy prices outlook following Russia39;s invasion of Ukraine.

In an update before second quarter results on July 28, Shell said its refining margins almost tripled over the period, boosted by recovering global demand from the pandemic, a lack of refining capacity and lower fuel exports from Russia.

Earnings from oil and refined products trading were expected to be strong in the quarter but lower than the first quarter of 2022, Shell said.

Shell39;s indicative refining margin rose in the second quarter to 28.04 per barrel from 10.23 a barrel in the first quarter and 4.17 a year earlier.

Oil and gas prices remained elevated in the quarter, with benchmark Brent crude averaging about 114 a barrel.

In the second quarter 2022, Shell has revised its mid and longterm oil and gas commodity prices reflecting the current macroeconomic environment as well as updated energy market demand and supply fundamentals, it said.

Shell increased its assumed price for Brent to 80 a barrel in 2023, up from 60 in its 2021 annual report. For 2024 and 2025, the Brent price was increased to 70 a barrel compared with 60. The longterm price was 65, compared with 63.

The upgrade will result in posttax impairment…