Shell trimmed the first-quarter outlook for its integrated gas production today, reflecting the impact of the Middle East conflict on volumes in Qatar.
Trading results at its chemicals and products business, which includes Shell's oil trading desk, are expected to be "significantly higher" than in the previous quarter, similar to adjusted earnings in its marketing arm, the British oil major said in a quarterly trading update.
Prices of Brent crude oil, the global benchmark, surged in the first quarter to multi-year highs near $120 a barrel, after the US and Israel attacked Iranin late February, resulting in Iran effectively shutting the Strait of Hormuz and attacking its Gulf neighbours.
Big Oilis expected to reap a multibillion-dollar windfall from the conflict because of soaring prices for the energy they sell.
Shell's first-quarter integrated gas production was expected to be about 880,000 to 920,000 barrels of oil equivalent per day, the company said. It previously expected 920,000 to 980,000 boed. In the fourth quarter of 2025, it produced 948,000 boed.
Shell's first-quarter LNG production was expected to be about 7.6 million to 8 million metric tons, the company said, adding that the figure reflected the ramp-up of LNG Canada but was offset by weather constraints in Australia and Qatar LNG outages.
It previously forecast 7.4 million to 8 million tons. In the fourth quarter of 2025, it liquefied 7.8 million tons.
Production at Shell's Pearl gas-to-liquids facility in Qatar stopped in mid-March after an attack on the Ras Laffan Industrial City damaged the facility, Shell said at the time.
Pearl GTL, a two-train facility that can process up to 1.6 billion cubic feet per day of wellhead gas, converting it into 140,000 bpd of gas-to-liquids, sustained damage on one the trains in the attacks, Shell has said.
Full repair of its train two would take around a year, Shell said at the time.
Shell's working capital, a short-term liquidity accounting measure of current assets minus liabilities, is expected to swing to minus $15 billion to minus $10 billion. This reflects the impact of unprecedented volatility in commodity prices on inventory, Shell said.
Global benchmark Brent crude prices averaged around $78.38 a barrel during the January-to-March quarter, compared with $63.08 in the fourth quarter and $74.98 a barrel during the same time last year.
