Shell's trading divisions are poised for strong second-quarter results, driven by continued volatility stemming from the Middle East conflict. The energy giant's gas traders, in particular, are expected to report significantly higher earnings compared to the first quarter. Shell's oil traders are also anticipated to deliver a robust performance, mirroring their strong showing in the previous period. This trading strength comes despite a notable decline in the company's integrated gas unit production.

Production in the integrated gas segment is projected to fall to between 610,000 and 650,000 barrels of oil-equivalent a day, a sharp decrease from the 909,000 barrels reported in the first quarter. Shell attributed this drop primarily to the impact of the Middle East conflict on its Qatari volumes.

While Shell does not publicly disclose specific trading segment profits, its chemicals and products division, which includes oil trading, posted adjusted earnings of $1.925 billion in the first quarter. Investors will monitor if the trading gains can offset the production declines and whether the company can secure alternative gas supplies to mitigate future output impacts.