JPMorgan says Shell best positioned as European refining margins fall amid rising costs.

JPMorgan reports that Shell PLC is among the best positioned European energy companies to handle declining refining margins, which have dropped sharply after peaking in March. The fall is due to rising crude prices, higher utility and freight costs, and weaker demand, pushing some refining margins into negative territory. The bank warns that if the tension between high oil prices and weakening demand persists, earnings forecasts for the sector could worsen, favoring companies like Shell with more upstream oil production exposure over those heavily reliant on refining, such as Repsol.