Shell Expects Q1 Earnings Boost from Oil Prices, Cuts Gas Outlook

Shell, the British energy giant, reported on April 8 that its first-quarter earnings would benefit from stronger oil trading and higher marketing results, fueled by surging global oil prices amid the ongoing Middle East conflict, even as it lowered its gas production outlook due to disruptions in Qatar.

The company, in its quarterly trading update, projected adjusted earnings in its marketing division, which encompasses its global network of fuel stations, to rise significantly from the same period a year earlier. Trading results in its chemicals and products business, including oil trading, were also expected to be substantially higher than in the previous quarter. These gains stem from volatility in energy markets triggered by the conflict, which began in late February when U.S. and Israeli strikes targeted Iran. In response, Iran closed the Strait of Hormuz, a vital shipping route for about one-fifth of the world's oil, and launched attacks on Gulf neighbors, damaging infrastructure including Shell's operations in Qatar.

Brent crude, the global benchmark, reached multiyear highs near $120 a barrel during the quarter, averaging around $80, up from $76 in the first quarter of...