In a trading update ahead of its quarterly results on Oct. 31, Shell said its indicative refining margins dropped to $5.5 a barrel in the three months to the end of September from $7.7 a barrel in the previous period. Trading results for its chemicals and oil products division were expected to be lower than in the second quarter, Shell said.

SHEL's profit margin in the Refining segment has dropped 30% sequentially, mainly due to a decline in the demand for refined products globally.

The energy giant said it expects to report a sharp drop in its refining margins when it posts its upcoming third quarter results on Oct. 31.

Shell Plc saw refining margins decline in the third quarter and expects to lose money in its chemicals business, a performance that reflects the broader weakening of the economy.

Shell announced on October 7 that its refining margins plummeted by nearly 30% in the third quarter, driven by a global decline in demand and increased competition from new refineries. The company also reported lower

Shell’s refining margins tumble amid faltering demand - The margin cut comes after global oil demand slowed in recent months across both consumer and industrial sectors.