LONDON, March 26, 2026, 12:14 GMT
Shell Plc climbed 0.86% to 3,462.5 pence by 11:56 GMT on Thursday, after investors saw upside for its major LNG operations following fresh supply pressures—this time from war-related outages in Qatar and lingering trouble at the Strait of Hormuz.
This is significant: Shell holds the top spot globally in LNG trading. LNG—short for liquefied natural gas—is natural gas cooled to a liquid to make overseas shipping possible. When cargoes have to take longer routes and market prices surge, those trades turn even more lucrative. On Wednesday, Reuters said investors have been snapping up shares of Western gas exporters and trading firms with Qatari flows under pressure.
The shock isn’t letting up. S&P Global Energy, ICIS, Kpler, and Rystad analysts have trimmed their global LNG supply forecasts—some by up to 35 million tons—after Qatar’s liquefaction trains suffered damage and the Hormuz chokepoint, which moves roughly 20% of the world’s LNG, was blocked.
Shell CEO Wael Sawan put it bluntly this week: “Countries cannot have national security without energy security.” His comments came as Brent crude spiked over 3% on Thursday, hitting $105.73 a barrel, while global equities slid. Sawan also flagged the risk that Europe could see energy shortages as early as next month if current disruptions continue. Reuters
“The gas price ramp has been the most important takeaway for markets,” said Mike Wilson at Jefferies. Irene Himona of Bernstein added that Europe will have to outbid Asia to attract additional U.S. cargoes, a dynamic that gives an edge to traders with global operations and scale. Reuters
Other major players went along, just not dramatically. BP edged up 0.83% in London trading, and TotalEnergies added 0.72% over in Paris. Broader European equities slipped, reflecting investor appetite for energy names even as inflation and growth anxieties weighed elsewhere.
But there’s a hitch. Shell’s massive Pearl gas-to-liquids operation in Qatar went down after attacks earlier this month hit one of its trains. On the flip side, that same spike in prices that’s helping traders is also dampening demand: Laura Page, who manages LNG Insight at Kpler, pointed out that the market’s finding equilibrium via “higher prices and demand destruction in South Asia.” Reuters
Barclays warned Thursday that if the Strait of Hormuz stays closed, the oil market could lose 13 million to 14 million barrels a day. Still, the bank’s main scenario sticks with the idea that shipments get back to normal by early April. Brent would then average $85 per barrel in 2026, according to their projections. Should that play out, a chunk of the current premium built into energy stocks could disappear fast.
Shell’s sticking with the $3.5 billion quarterly buyback it announced in February, even after coming up short on fourth-quarter profit forecasts. The company’s been serious about repurchasing its own shares; over the past four years, about one in four has been bought back, Reuters noted.
At this point, investors seem to be zeroing in on Shell’s gains from shifting cargo routes and choppy gas pricing, rather than worrying much about its Gulf ties. That’s keeping the stock afloat as Europe and Asia scramble for alternative supplies. Still, a lasting reopening of Hormuz would likely cool things off.
