Shell Sells Jiffy Lube for $1.3 Billion, Charters 539,000 bpd Canadian Oil
Iran conflict has driven Canadian crude to trade at an $0.80 premium to Brent and led Shell to charter vessels moving 539,000 barrels per day while transport costs surged over 70% to $10. Shell sold Jiffy Lube to Monomoy Capital for $1.3 billion to focus on higher-return lubricants and mobility.
1. Global Supply Disruption Spurs Canadian Demand
Conflict involving Iran has sharply slowed tanker traffic through the Strait of Hormuz, which handles about 20% of global crude shipments, prompting Middle East producers to cut output. This shift has driven Canadian heavy crude to an $0.80 premium to Brent as Asian refiners seek alternative supplies.
2. Shell Charters Vessels Amid Rising Transport Costs
Shell participated in at least five charter bookings to move roughly 539,000 barrels per day via the expanded Trans Mountain pipeline. During March, transport costs jumped over 70% to about $10 per barrel, reflecting higher insurance risks and freight rates in the Middle East.
3. Divestment of Jiffy Lube for $1.3 Billion
Shell agreed to sell its Jiffy Lube service business to Monomoy Capital Partners for $1.3 billion, marking an exit from a non-core asset. Proceeds from the transaction will be used to strengthen focus on higher-margin lubricants and mobility segments.