(Jan 8): Shell plc said its oil trading performance significantly worsened in the fourth quarter as crude prices slumped.
Oil trading results for the fourth quarter are “expected to be significantly lower” compared with the previous three months, Shell said in a trading update on Thursday, ahead of an earnings report due early next month.
Shell’s massive in-house trading business deals in oil, gas, fuels, chemicals, renewable power and carbon credits — trading both the company’s own production as well as supply from third parties. The energy major doesn’t disclose separate results for its traders, but the performance is closely watched as it can be a key driver of earnings.
Shell’s traders reduced risk taking in the first half of 2025 as tensions in the Middle East ratcheted up with Israel’s bombing of Iran and concern that Tehran might retaliate by harassing shipping in the vital Strait of Hormuz corridor.
Last quarter, volatility eased as the oil market is widely seen heading to a supply glut, buffering the impact of global tensions. The Brent crude benchmark traded mostly within a narrow range between US$60 and US$65 a barrel in the quarter as production rose from and outside the OPEC+ alliance. After an 18% slide in 2025, prices are broadly forecast to decline further this year.
Uploaded by Evelyn Chan
