Shell signaled it expects significantly higher earnings from oil and liquefied natural gas (LNG) trading during the second quarter compared to the first, fueled by extreme price swings caused by the ongoing war in Iran. This surge in trading results comes as energy markets have experienced unprecedented volatility, intensifying opportunities in commodity optimization.
The company’s integrated gas division, which includes oil and LNG trading, anticipates a strong performance increase over the earlier quarter. Meanwhile, the chemical products and marketing divisions are likely to report trading and optimization outcomes consistent with their first-quarter results. This follows Shell’s earlier announcement of robust profits in the initial quarter, largely credited to sharp increases in oil prices and aggressive market activity.
Industry peers such as BP and TotalEnergies also recorded unexpectedly high profits in Q1, mainly driven by trading gains amid fluctuating energy prices. Although these supermajors rarely disclose exact trading profits, analysts estimate earnings from trading activities to reach several billion U.S. dollars each quarter when markets are turbulent.
The energy giants are poised to release their full second-quarter financial reports soon, with expectations of continued strong profits sustained by elevated oil and gas prices and volatile trading conditions. However, amid these lucrative results, major oil companies face scrutiny from the U.S. government, which is investigating potential price-gouging and pressing for immediate reductions in gasoline prices.