London, February 20, 2026, 07:44 GMT — Premarket
- Shell said fresh U.S. general licences for Venezuelan oil and gas exploration clear the way for its Dragon gas project to proceed.
- Shell climbed 1.46% to 2,944 pence on Thursday, notching a fresh 52-week high even as the FTSE 100 slipped.
- Oil hovered close to six-month peaks Friday, with U.S.-Iran tensions continuing to inject a risk premium into crude.
Shell (SHEL.L) says the new U.S. general licenses for Venezuelan oil and gas, rolled out this month, mean the company can finally move forward on its long-stuck Dragon natural gas project. That field, estimated at roughly 4.5 trillion cubic feet of reserves, is intended to supply Trinidad’s Atlantic LNG facility—where both Shell and BP each hold 45% stakes. “The issuance of the recent general licenses is a positive signal, and it, indeed, allows for progress on our Dragon project,” a spokesperson told Reuters, pointing to years of holdups tied to changing U.S. policy. Atlantic LNG has room for 12 million tonnes a year, but only shipped 9 million tonnes in 2025, hampered by gas shortages, LSEG data showed. Reuters
What’s changed: These new licences mark another step in the gradual re-opening of Venezuela’s energy sector, putting Shell in the frame with other foreign players starting to return. Chevron has managed to sustain output through joint ventures with PDVSA, producing between 240,000 and 250,000 barrels daily. BP and Shell, meanwhile, are re-evaluating previously frozen gas projects, though the country remains weighed down by political and sanctions-related uncertainty.
Oil’s rally continues to prop up European energy stocks. Brent climbed 0.5% to $71.99 a barrel, with U.S. crude gaining 0.9% at $67.05 as of 0715 GMT—hovering around six-month highs. Tension between Washington and Tehran is sharpening, and traders are eyeing possible disruptions at the Strait of Hormuz. “Crude oil prices have edged to six-month highs as concerns over potential supply risks from the Strait of Hormuz keep markets on edge,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. Reuters
Shell shares pushed up 1.46% to £29.44 on Thursday, topping out at a fresh 52-week high. That move came even as the FTSE 100 slid 0.55% to 10,627.04. Trading volume stood at 7.0 million, trailing the 50-day average of 9.5 million, according to MarketWatch data.
Buybacks remained a quiet but consistent presence. On Feb. 19, Shell disclosed the purchase of 3,407,159 shares for cancellation across several venues, tied to its ongoing programme. The company also noted that, starting Feb. 5 and running through May 1, Morgan Stanley would handle trading decisions independently.
Shell shares traded ex-dividend on Thursday, meaning anyone buying after this point misses out on the next payment. The company’s fourth interim dividend stands at 37.20 cents per share, with a payout set for March 30, Hargreaves Lansdown market data shows.
Oil prices jumped again Thursday, following data from the Energy Information Administration showing sharp drops in U.S. inventories. Crude stocks dropped by 9 million barrels last week to 419.8 million barrels, defying forecasts for an increase. Gasoline and distillate supplies also fell. Both Brent and U.S. crude surged roughly 2% after the report hit. “Support for oil prices came from a very bullish EIA report, showing massive draws across the board and stronger U.S. oil demand,” UBS commodity analyst Giovanni Staunovo said. Reuters
Still, “allowed to progress” doesn’t mean money is flowing in. Dragon’s history with starts and stops isn’t forgotten. Shell hasn’t committed to a final investment decision date, and a change in U.S. policy could throw things off course again. Oil prices drop? Pressure builds fast.
Looking to London, traders want to see if Venezuela’s licensing regime actually leads anywhere—specifically, if Shell gets clearer progress on Dragon and Atlantic LNG feedgas. Elsewhere, two watchlist dates stand out: the buyback program wraps up May 1, and the dividend lands March 30.
