Shell expects to make more money from its refining business in the third quarter as stronger refining margins boost its performance.

The energy company said its refining margin is expected to rise to about $42 per barrel in the third quarter, up from $24 per barrel in the previous quarter.

The projected increase comes as global energy markets continue to experience supply disruptions linked to the conflict involving Iran, pushing energy prices higher and improving returns for major oil companies.

Shell also raised its forecast for integrated gas production to between 740,000 and 780,000 barrels of oil equivalent per day. This is above its previous estimate of 570,000 to 630,000 barrels per day.

The higher gas forecast includes production from Canadian energy company ARC Resources, following Shell’s completion of its $16.4 billion acquisition of the company in September.

Shell expects to produce between 7.2 million and 7.6 million metric tonnes of liquefied natural gas during the quarter, compared with 7.7 million tonnes in the second quarter.

The company, however, narrowed its forecast for upstream production to between 1.74 million and 1.84 million barrels of oil equivalent per day, from an earlier range of 1.68 million to 1.88 million barrels per day.

Shell also expects lower refinery utilisation in its chemicals and products division due to low water levels on Germany’s Rhine River, which are affecting operations at its Rheinland refinery.

The company’s stronger refining outlook comes as major oil producers benefit from higher energy prices and increased market volatility caused by disruptions to global oil and gas supplies.