London, March 11, 2026, 13:39 GMT
- Shell climbed roughly 0.5% in London by 1103 GMT, leaving the FTSE 100 behind as energy names benefited from stronger crude.
- Shell has suspended certain delivery commitments on Qatari LNG cargoes sold to clients, Reuters reported. March shipments are still on track, but the company expects disruptions starting in April.
- Shell’s $1.3 billion Jiffy Lube deal and new agreements in Venezuela are hitting the radar, both part of the company’s latest portfolio overhaul.
Shell stock edged up roughly 0.5% in London by 1103 GMT on Wednesday, bucking the broader UK market’s slide. Oil prices were moving higher, and traders were digesting a Reuters report that Shell had paused some contractual LNG deliveries from Qatar. BP posted a comparable gain. The FTSE 100, on the other hand, moved lower.
This shift is significant for Shell, given its central role in the ongoing energy crunch. Rising crude and gas prices have the potential to boost Shell’s profits. But as the world’s top LNG trader, Shell faces risks when Qatari supply falters.
Brent crude jumped 3.8% to $91.11 a barrel by 1159 GMT, as traders shrugged off the International Energy Agency’s push for an over 100 million barrel emergency stock release in the first month—betting that Gulf supply shocks will outweigh the move. “It doesn’t look like the oil market thinks” this record-sized release will have much effect on the crisis, SEB’s Bjarne Schieldrop said. Reuters
Shell, TotalEnergies and several Asian customers have declared force majeure, according to Reuters, following QatarEnergy’s shutdown at its 77 million-tonne-per-year LNG facility. The force majeure clause allows suppliers to skip deliveries without facing penalties when uncontrollable events disrupt supply. Shell’s annual intake from Qatar stands at 6.8 million tonnes, by analysts’ count. March shipments should still go through, but April is when impacts start showing up.
Gas markets caught a bit of a break. LNG Canada, led by Shell, pushed out five cargoes to Asia in the first 11 days of March and is running close to its 14 million-tonne-per-year nameplate. That gives buyers a workable alternative outside the Middle East, right as the Qatar outage starts to put pressure on supply.
Monday brought news of a $1.3 billion deal: Jiffy Lube and Premium Velocity Auto are being sold to Monomoy Capital Partners. Shell’s Machteld de Haan said the move is meant to “reinvest in opportunities that generate higher returns,” backing CEO Wael Sawan’s ongoing effort to shed assets with slimmer margins. Reuters
Yet equity markets haven’t matched the run-up in oil. James West, who leads energy and power research at Melius Research, pointed out earlier this week that many investors expect the Strait of Hormuz shutdown to be short-lived, with oil prices returning to normal soon. That’s left major oil stocks trailing behind the crude rally.
Shell told Reuters it’s inked a batch of deals with Venezuela—offshore gas, onshore oil and gas, exploration, plus commitments on local content and workforce training all included. Chevron is holding similar talks. For these majors, eyes are turning to expansion routes that don’t run through the Gulf’s choked lanes.
Risk isn’t limited to the Middle East. On Wednesday, Raizen—Shell’s sugar and ethanol joint venture with Cosan out of Brazil—announced it had struck an out-of-court agreement to restructure 65.1 billion reais in debt. But should the IEA release ease pressure on crude, or if Qatar’s output bounces back sooner than traders anticipate, any short-lived boost in Shell’s stock might evaporate just as fast.
Shell finds itself in a curious spot: investors see it benefitting from stronger energy prices, yet also exposed to the volatility driving those gains. The stock has climbed, but hasn’t managed a breakout.
