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Shell has lowered its gas production outlook for the first quarter of 2026 after attacks linked to the Middle East conflict disrupted key operations in Qatar.
The FTSE 100 energy giant said integrated gas output is now expected to come in at between 880,000 and 920,000 barrels of oil equivalent per day (boed), down from previous guidance of 920,000 to 980,000 boed.
The revised forecast also marks a fall from 948,000 boed recorded in the final quarter of last year.
The downgrade follows disruption at the Pearl GTL facility in Qatar, one of the world’s largest gas-to-liquids plants, which was forced to halt production after it was struck in recent attacks. Liquefied natural gas facilities in the country, partly owned by Shell, have also been affected.
The update marks the company’s first since the escalation of conflict between US-Israeli and Iranian forces at the end of February, which has rattled global energy markets.
Despite the hit to production, Shell said trading in its chemicals and products division — including oil trading — is expected to be significantly stronger than the previous quarter, buoyed by surging energy prices.
Benchmark Brent crude initially spiked to nearly $120 a barrel following the outbreak of hostilities, amid disruption to flows through the Strait of Hormuz, a key artery for global oil and gas supplies. Prices have since eased back to around $92.80 after a sharp overnight fall tied to a fragile two-week ceasefire.
Shell added that Brent crude averaged $81 per barrel over the quarter, up from $76 per barrel over the same period last year.
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