Shell Gas Production Dips, Trading Surges

The energy giant's PearlGTL site in Qatar ceased production after attacks, and its partly-owned LNG facilities were also affected, leading to the reduced gas output guidance. This revised outlook represents a slump from 948,000 BOED in the final quarter of last year.

Conversely, Shell anticipates its chemical and products business, including oil trading, will report "significantly higher" earnings compared to the previous quarter. This surge is attributed to a jump in energy prices following the conflict between US-Israeli and Iranian forces, which began in late February.

The conflict caused Brent crude oil, jet fuel, and gas prices to surge, with Brent crude briefly reaching nearly $120 per barrel and disrupting the Strait of Hormuz shipping corridor. Although Brent crude prices dipped to $92.8 per barrel after a two-week ceasefire announcement, Shell reported an average Brent crude price of $81 per barrel for the latest quarter, an increase from $76 per barrel in the same period last year.