Third-Quarter Oil Profits Climb From Beijing to Houston on Higher Prices and Refining Gains

DALLAS, Oct. 28, 2026 /CNW/ -- Oil Market Daily News Commentary - Third-quarter results from oil producers and refiners are arriving in a market still shaped by tight supply. The U.S. Energy Information Administration said the Brent crude oil spot price averaged $114 per barrel in September, $23 higher than in August, and the International Energy Agency said cumulative global observed inventories were 509 million barrels below pre-war levels by the end of September. Over the longer term, Towards Chemical and Materials estimated the global oil and gas market size at USD 6.10 trillion in 2024 and expects it to surpass around USD 8.79 trillion by 2034, growing at a CAGR of 3.72% from 2025 to 2034. Active Companies from around the markets with current developments this week include: PetroChina Company Limited (HKSE: 00857; SSE: 601857), Eni S.p.A. (NYSE: E), Equinor ASA (NYSE: EQNR), Phillips 66 (NYSE: PSX).

In its October Short-Term Energy Outlook, the EIA estimated that crude oil production shut-ins averaged 4.8 million barrels per day in September, down from 5.8 million b/d in August and from 10.9 million b/d at the peak in May, and that global oil inventories fell by an average of 1.9 million b/d in the third quarter. The agency forecasts the Brent spot price will decrease to an average of $87 per barrel by the second quarter of 2027. Brent spot prices stood at $123.10 a barrel on October 27, with WTI at $103.37, according to EIA daily data.

The IEA's October Oil Market Report forecast world oil demand to fall by 2.6 million barrels per day on average in 2026, but said oil market balances are forecast to remain in deficit through the end of the year, with constrained middle distillate supplies likely to persist well into 2027. Global oil supply rose by 2.5 million b/d month on month to 102.3 million b/d in September, driven by Gulf producers, and the agency said renewed attacks in the Gulf leave the recovery fragile.

U.S. data released Wednesday showed the same tightness. Commercial crude oil inventories fell 1.9 million barrels to 410.6 million barrels in the week ending October 23, 4% below the five-year average, while distillate inventories fell 1.5 million barrels to 10% below the five-year average, according to the EIA's weekly report. U.S. refineries processed 16.5 million b/d at 92.8% capacity utilization. On the supply side, the seven OPEC+ countries that decided on October 4 to maintain September 2026 required production for November will meet again on November 1.

With crude prices, refining margins and shareholder payouts all moving in the same reporting week, a single oil earnings release can be read several ways. The free Knowledge is Power guide from Stock Preachers, available at oilmarketdaily.com/sp, shows how to line up the headlines with the charts.

In other industry developments and happenings in the market this week include:

PetroChina Company Limited (HKSE: 00857; SSE: 601857)

PetroChina reported on October 28 that third-quarter profit attributable to owners of the company rose 21.6% to RMB51,840 million under IFRS Accounting Standards, on revenue of RMB793,573 million, up 10.4%. For the first three quarters, profit attributable to owners rose 21.9% to RMB155,776 million, and the company said its operating results reached the best same-period level in history. Its average realized crude oil price for the nine months was US$77.65 per barrel, up 18.5%, and it processed 346.9 million barrels of crude oil in the third quarter, an increase of 11.1% from the second quarter. The refining, chemicals and new materials business achieved an operating profit of RMB 23.13 billion, up by RMB 6.89 billion year on year.

Eni S.p.A. (NYSE: E)

Eni reported on October 23 third-quarter adjusted net profit of €2,801 million, up 125% from €1,247 million a year earlier, and net profit of €3,205 million, compared with €803 million. Underlying exploration and production output rose 7% to 1.83 million barrels of oil equivalent per day, and its Refining, Chemicals and Sites in transformation segment posted proforma adjusted EBIT of €472 million, compared with a loss of €53 million a year earlier. Citing an improved cash flow projection of €16.5 billion for the full year, the Italian company resolved to distribute an extraordinary dividend of €0.46 per share in December and to increase its buyback program by 12% to €3.8 billion.

Equinor ASA (NYSE: EQNR)

Equinor reported on October 28 third-quarter adjusted operating income of USD 12.35 billion, net operating income of USD 11.95 billion, up from USD 5.27 billion in the same quarter last year, and net income of USD 2.54 billion. The Norwegian company said the results were supported by higher commodity prices and strong refining margins, cited a record contribution from the Mongstad refinery and increased its 2026 production growth guidance to around 4%. Equinor realised a liquids price of USD 92.3 per barrel and a European gas price of USD 20.0 per mmbtu in the quarter, declared a third-quarter cash dividend of USD 0.39 per share and acquired an interest in the Lackawanna gas-fired power plant in the U.S.

Phillips 66 (NYSE: PSX)

Phillips 66 reported on October 28 third-quarter earnings and adjusted earnings of $5.6 billion, or $14.08 per share, up from earnings of $3,847 million, or $9.55 per share, in the second quarter. Refining segment earnings, reported on a pre-tax basis, rose to $6,031 million from $3,062 million, with a realized margin of $38.00 per barrel compared with $24.08, refining utilization of 98% and a third-quarter record distillate yield of 41%. The company returned $2.8 billion to shareholders, decreased total debt by $2.0 billion to $18.5 billion and reached a final investment decision on the proposed Western Gateway Pipeline system, with an expected in-service date in 2029.

Results from Beijing, Rome, Stavanger and Houston point to the same themes this season: elevated crude prices, tight inventories and stronger refining results. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at oilmarketdaily.com/sp.

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This article is independent news commentary. Oil Market Daily is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Oil price, inventory and forecast data are from the U.S. Energy Information Administration (Short-Term Energy Outlook released October 6, 2026; Weekly Petroleum Status Report released October 28, 2026; daily spot prices as of October 27, 2026), the International Energy Agency (Oil Market Report published October 14, 2026) and OPEC (press release dated October 4, 2026). Company results are as reported by PetroChina on October 28, 2026 (unaudited, IFRS Accounting Standards), Eni on October 23, 2026, Equinor on October 28, 2026 and Phillips 66 on October 28, 2026, and include non-GAAP measures as defined by each company. Information is drawn from company news releases and filings, government and industry data, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland.

SOURCE Oil Market Daily