Shell flags significantly higher Q2 oil and LNG trading gains as Iran war fuels market volatility

AI Market Summary
Shell flagged materially higher Q2 oil and LNG trading and optimization results as the Iran war drove extreme energy-market volatility, extending a Q1 pattern of windfall trading gains across European majors. The update reinforces that price dislocations and higher realized liquids prices are supporting upstream and trading profitability, which can tighten risk premia in crude and LNG benchmarks near-term even as U.S. scrutiny of potential price gouging rises.
Impact level
● Medium
Affected assets
NCCO1OILBRENT2USD/USDT-2.35%
AI Insight · NCCO1OILBRENT2USD/USDTAI Insight
▲ Bullish
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Shell said its oil and gas trading profit in Q2 is set to be significantly higher than in Q1, after the Iran war triggered extreme volatility in energy markets. The company said trading and optimization in its integrated gas division, including LNG, improved sharply, while chemicals, products and marketing are expected to be in line with Q1’26. Shell had already posted consensus-beating Q1 earnings as higher realized liquids prices and stronger trading lifted results amid unusually volatile conditions. Europe’s top oil majors have also benefited from the trading surge tied to geopolitics, with analysts expecting Q2 to deliver another round of large trading profits.