Shell PLC (Shell (SHEL)) shares climbed Tuesday after the company raised its production outlook for the second quarter, giving investors a reason to feel optimistic ahead of its earnings report later this month.

Raises Production Outlook

Shell now expects Integrated Gas production of 610,000 to 650,000 barrels of oil equivalent per day (boe/d), up from its previous guidance of 580,000 to 640,000 boe/d. The company also said Trading and Optimization performance in the Integrated Gas segment is expected to be significantly higher than in the first quarter.

In addition, Shell raised its LNG liquefaction outlook to 7.4 million to 7.8 million metric tons, compared with prior guidance of 6.8 million to 7.4 million metric tons. The company also increased its Upstream production forecast to 1.75 million to 1.85 million boe/d from its earlier range of 1.62 million to 1.82 million boe/d.

Refining Outlook Improves

Shell now expects refinery utilization of about 100%, compared with previous guidance of 91% to 99%. The company forecasts refining margins of about $20 per barrel for the second quarter, up from $17 per barrel in the first quarter. Chemical plant utilization is expected to range between 80% and 84%, compared with prior guidance of 76% to 84%. Shell also projects marketing sales volumes of 2.55 million to 2.65 million barrels per day, versus its earlier outlook of 2.50 million to 2.70 million barrels per day.

Long-Term LNG Demand Remains Strong

Shell expects global liquefied natural gas demand to rise about 65% from 2025 levels to nearly 700 million metric tons a year by 2050, according to its LNG Outlook 2026. The company said growing energy security needs and the transition away from coal will continue to support LNG demand.

Shell said disruption to shipping through the Strait of Hormuz has temporarily shut in about one-fifth of global monthly LNG supply, lifting spot prices. However, stronger North American output, improved plant performance and slower Asian imports have partly offset the impact. The company expects global LNG trade in 2026 to be similar to 2025 if shipping normalizes this summer, with growth resuming in 2027.

Shell also forecasts about 180 million metric tons of new annual LNG supply by 2030 and said South and Southeast Asia will account for about 40% of global LNG imports by 2050. It added that LNG bunkering demand is expected to increase sevenfold by 2035, while Europe will remain a key LNG market as domestic gas production declines.

Shell Stock Performance And Technical Analysis

Shell stock rose more than 2% in Tuesday's premarket session. Nasdaq futures were down 0.93%, while S&P 500 futures slipped 0.14%.

The stock appears to be finding support near its 200-day simple moving average, a level that often attracts long-term investors. Shell is trading about 0.4% above its 200-day SMA of $79.73. However, it remains 1% below its 20-day SMA of $80.85 and 5.1% below its 50-day SMA of $84.35. That suggests the longer-term trend remains intact, but the intermediate trend is still under pressure.

Momentum indicators also remain cautious. The MACD is below its signal line, while the histogram remains negative. That typically signals weakening buying momentum unless fresh demand emerges.

If buyers regain control, the next area to watch is the mid-$80s, where the stock faces resistance from key moving averages. On the downside, holding the low-$80s could help preserve the current trading range. Key resistance stands near $88.50. Key support is around $70.50, above the 52-week low of $68.63.

Shell Earnings In Focus

The company's next major catalyst is its scheduled July 30 earnings report. Wall Street expects earnings of $2.83 per share, up from $1.44 a year earlier, on revenue of $91.6 billion, compared with $65.41 billion in the prior-year quarter.

Analysts maintain a consensus Buy rating on the stock with an average price forecast of $110.88. Recent analyst moves include Jefferies raising its price forecast to $122.40 in May, Scotiabank increasing its forecast to $122 in April and TD Cowen trimming its forecast to $110 while maintaining a Buy rating.

Shell Price Action

Shell shares were up 2.32% at $79.95 during premarket trading on Tuesday, according to market data.