Shell plc expects to see a sharp rebound in the value of its natural gas and oil portfolio when the second quarter results are published, as the long-term outlook for commodity prices and demand soar, the London-based major said Thursday.

In a preview of its second quarter results, scheduled to be issued on July 28, Shell said higher fuel refining margins alone could add more than $1 billion to profits. Shell increased its assumed 2023 price for Brent crude, Europe’s benchmark, to $80/bbl. Brent is forecast to average $70 in 2024 and 2025, with the long-term average of $65.

“In the second quarter of 2022, Shell has revised its mid- and long-term oil and gas commodity prices, reflecting the current macroeconomic environment as well as updated energy market demand and supply...