Shell has upgraded its integrated gas production forecast for the second quarter, a move underpinned by the sharp rise in crude oil prices and strong performance in its oil and gas trading division.
The revision comes as the ongoing conflict in the Middle East continues to disrupt regional supply chains, particularly impacting gas production output from Qatar.
92 billion already surpassed market expectations, setting a high bar for the remainder of the year.
The energy giant’s trading operations have benefited significantly from the volatility induced by the Iran conflict, which has kept crude benchmarks elevated.
While the geopolitical instability has constrained physical gas output in key export hubs, Shell’s diversified portfolio and trading capabilities have allowed it to capitalize on the price dislocations.
This dynamic highlights the growing importance of trading margins for integrated majors as traditional production faces geopolitical headwinds.
Shell’s first-quarter adjusted earnings of $6.92 billion already surpassed market expectations, setting a high bar for the remainder of the year.