Shell Earnings Highlight Pressure from Softer Crude and Gas Benchmarks

Shell reported a weaker-than-expected fourth-quarter profit, with earnings falling 11% to the lowest level since early 2021, pressured by softer crude and gas benchmarks even as it maintained an aggressive share buyback program. The results underscore the sector’s vulnerability to anticipated oversupply in both crude and LNG markets, highlighting how sustained lower pricing in key benchmarks such as Oil – Brent Crude, Oil – US Crude, and Natural Gas could weigh on cash flows for integrated majors, even as they prioritize shareholder returns.

Over the past month, Oil – US Crude has advanced about 9.7%, while Oil – Brent Crude is up roughly 10.5%, signaling a rebound from earlier weakness that had pressured Shell’s realized prices; both contracts currently flash a 1-day technical signal of Strong Buy and Strong Buy, respectively, suggesting near-term bullish momentum despite concerns over future oversupply. Natural Gas has gained approximately 21.3% over the last month, outpacing crude benchmarks as it reacts to shifting seasonal demand and supply expectations, with its 1-day technical stance showing a Buy signal; however, the longer-term outlook remains sensitive to the expected LNG glut noted by Shell. Investors can explore more updates, prices, and analysis across global markets at Commodities.