What Shell’s CEO is saying about the oil market right now

Shell’s CEO says the energy market turbulence triggered by the Iran war is creating both immediate profits and longer-term uncertainty, The Wall Street Journal writes.

Wael Sawan says the volatility in oil and refined products markets created major opportunities for Shell’s trading business, helping drive the company’s strongest quarterly earnings in two years. But he also signaled cautious optimism about what comes next, saying damaged Qatar operations could restart quickly if the Strait of Hormuz reopens.

For now, Shell expects a significant drop in second-quarter gas production as disruptions continue. The company is preserving cash, trimming its share buyback program with an eye toward future opportunities.

Sawan’s comments reflect a broader balancing act for global energy companies: capitalizing on elevated prices in the short term while navigating operational disruptions, geopolitical instability and uncertainty over how quickly supply chains can normalize if tensions in the Middle East ease.

The Wall Street Journal has the full story.