
Shell trims gas outlook in volatile market
The group – which recently denied speculation it was considering making a bid for rival BP – trimmed the top end of its production guidance for the integrated natural gas division to 900,000 to 940,000 barrels of oil equivalent per day (boe/d) for the second quarter, compared with a range of 890,000 to 950,000 previously given.
This would compare with 927,000 boe/d reported in the first quarter.
Shell – the world's biggest LMG trader – also said trading results for its integrated gas division would be 'significantly lower' than in the first three months of 2025.
The trading division has driven strong profits for the company in recent years.
The upper end of its outlook for its liquefied natural gas (LNG) production has likewise been lowered, to 6.4 to 6.8 million metric tons in the second quarter compared with a previous range of 6.3 to 6.9 million tons.
Shell added that upstream oil production is expected to fall quarter-on-quarter in the three months to June after output was impacted by scheduled maintenance and the completed sale of the Shell Petroleum Development Company in Nigeria.
It is forecasting upstream production of around 1.66 million and 1.76 million equivalent barrels a day, down from 1.86 million barrels in the first quarter.
But this sees it nudge up the guidance for the lower end of the forecasted range, from 1.56 million previously.
It comes as oil prices have see-sawed in recent months, dropping to four-year lows in April amid US President Donald Trump's trade war and then surging higher in June due to the conflict in the Middle East as worries heightening over disruption to crucial supply routes.
Brent crude currently stands at just over 68 US dollars a barrel.
Shell, which is due to report second-quarter results on July 31, said last month it had no intention of making an offer to buy BP, quashing speculation that the two UK energy giants were in early talks over a possible takeover.
It had been reported that talks between company representatives were active, but Shell told investors that no such discussions had taken place and that it was not planning a bid.
The announcement means it cannot bid for BP for the next six months under UK takeover rules.

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