StockMarketWire.com - Oil giant Royal Dutch Shell said it would cut up to 9,000 jobs by the end of 2022 as it adapts to a lower oil price environment amid the pandemic.

Shell said job cuts of 7,000-to-9,000 were expected, including around 1,500 people who had agreed to take a voluntary redundancy this year.

The company also narrowed its third-quarter production forecast for its upstream oil and gas business after it took a hit from hurricanes in the US Gulf of Mexico.

Production for the three months through September from the upstream busines was expected at between 2.15 million and 2.25 million barrels of oil equivalent per day, the company said.

That compared to guidance given at the time of the company's second-quarter results of between 2.10 million and 2.40 million barrels.

The fresh guidance included a production impact of 60 to 70 thousand barrels per day from the hurricanes.

In the oil products business, Shell warned its refining margins in the third quarter were expected to be 'significantly lower' than in the second quarter.

The refinery utilisation rate was expected to be between 64% and 68%, lower than previous guidance of 68% - 76%.

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