London, Jan 13, 2026, 08:52 GMT — Regular session
- Shell shares climbed in early London trading, buoyed by stronger crude prices.
- The company announced a fresh batch of share buybacks set for cancellation.
- Oil markets are zeroing in on supply risks from Iran and the potential influx of additional Venezuelan barrels.
Shell Plc shares climbed 0.6% in early London trading Tuesday, hitting 2,678.6 pence by 0846 GMT, near the session peak. The rise came as oil prices edged up and the company kept up its steady pace of share buybacks. On Monday, the stock closed at 2,661.5 pence.
This shift is crucial since Shell’s immediate outlook still hinges on three factors: crude prices, cash returns, and the company’s guidance for the upcoming quarter. Minor fluctuations in oil tend to overshadow the more muted buyback news.
Oil prices climbed further on fears of supply disruptions from Iran, a key OPEC member, amid its largest anti-government protests in years. Brent futures added 47 cents, reaching $64.34 a barrel by 0735 GMT. ING’s commodities strategists linked the uptick to escalating unrest in Iran, while Barclays estimated the geopolitical risk premium at around $3-$4 per barrel.
Shell disclosed it purchased 1,013,854 shares on the London market on Jan. 12, at a volume-weighted average price (VWAP) of £26.4575. It also bought 948,138 shares in Amsterdam, with a VWAP of €30.5628, all set for cancellation. The company added that Merrill Lynch International is handling trading decisions for the programme independently through Jan. 30.
Shell announced its wider programme amounts to $3.5 billion, divided between London and Netherlands contracts capped at $1.75 billion each. A buyback means the company spends cash to repurchase its own shares; canceling those shares cuts the total count and can boost metrics per share, but it also ties up capital that might be deployed differently.
Daily repurchase disclosures rarely spark major market moves by themselves, but they can influence short-term flows—especially when oil prices shift and traders have a directional bias. The price at which buybacks occur also draws attention; investors note if companies are buying on strength or during dips.
Still, the boost to crude prices might not last. Reuters says traders are balancing worries over Iran-driven supply disruptions with hopes that Venezuelan output could increase. Goldman Sachs expects oil prices to trend downward this year as fresh supply hits the market, despite ongoing geopolitical jitters that keep volatility elevated.
In London, Shell often serves as the go-to proxy for the “barrel-plus-cash-returns” trade, alongside BP and TotalEnergies. Meanwhile, U.S. giants Exxon Mobil and Chevron follow the same oil math, though their company-specific drivers vary.
Shell holders face two clear questions right now: will oil prices hold steady, and will the buyback wrap up as planned without slowing down or shifting strategy? Any move on either front usually hits the share price quickly.
Shell plans to release its fourth-quarter results on Feb. 5. Investors will be focused on updates regarding cash flow and capital returns through 2026.
Related articles: LSE:RDSA
