Shell cuts gas production outlook blaming Middle East conflict

Shell has reduced its gas production outlook for the first quarter of 2026 after being impacted by the conflict in the Middle East.

The energy giant trimmed its guidance for integrated gas production after volumes from Qatar were particularly impacted during recent attacks.

Last month, Shell’s PearlGTL site in Qatar stopped production after being hit during attacks while LNG facilities in the country partly owned by Shell have also been impacted.

The FTSE 100 firm pointed to gas production of 880,000 to 920,000 barrels of oil equivalent per day (BOED), for the latest quarter.

It had previously predicted this would be between 920,000 and 980,000 BOED, and it would represent a slump from 948,000 in the final quarter of last year.

Meanwhile, Shell said trading from its chemical and products business, which includes oil trading, is expected to be “significantly higher” than in the previous quarter after a jump in energy prices.

It is the company’s first update since the start of the conflict between US-Israeli and Iranian forces at the end of February.

Brent crude oil, jet fuel and gas prices have all surged after production was impacted by attacks in the region, and the important Strait of Hormuz shipping corridor was heavily disrupted.

The price of Brent crude jumped to nearly 120 US dollars a barrel, and currently sit at 92.8 dollars a barrel after a sharp overnight slump in prices linked to a two-week ceasefire.

Shell said Brent crude prices averaged around 81 dollars a barrel for the latest quarter, up from 76 dollars in the same period a year earlier.