Shell boosted by oil spike as gas production recovers

Shell has upped its integrated gas production outlook for the second quarter after the soaring cost of crude boosted its oil and gas trading businesses.

The oil giant raised its guidance for between April and June, though it is still set to drop sharply compared with the first quarter due to the Middle East conflict impacting output from Qatar.

Shell’s Pearl GTL site in Qatar stopped production in March after being hit during attacks, while LNG facilities in the country partly owned by Shell were also affected.

While its Pearl site has not been able to produce gas since the missile attack, the group has seen production boosted thanks to a strong performance at other facilities globally.

The group said trading results at its chemicals and products unit – including its oil trading business – ⁠are ⁠expected to be ‌in line with the previous quarter’s ‌results, when the division saw underlying earnings more than quadruple year-on-year to £1.44 billion.

Shell added the performance in its gas trading division is set to be “significantly higher” than in the first three months of the year.

Brent crude oil, jet fuel and gas prices rocketed higher after the Iran war began in February.

The price of crude hit more than $120 a barrel, but has fallen back to levels seen before the war, to about $73 a barrel, after the US and Iran signed an interim peace deal.

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