Shell PLC Breaks Out and Retests Key Support After LNG Ruling

Shell has been thrust back into the spotlight after an International Chamber of Commerce arbitration panel ordered the company to pay Venture Global’s legal fees in an LNG supply dispute. The ruling follows Shell’s earlier loss in a case centered on Venture Global’s failure to deliver contracted LNG cargoes while selling into the spot market during the price surge triggered by Russia’s 2022 invasion of Ukraine. Although the fee amount remains undisclosed, Venture Global stated it will direct the funds toward coastal restoration projects in Louisiana. Shell is appealing the decision in the New York Supreme Court, mirroring a similar challenge by BP after it also lost an LNG arbitration worth more than $1 billion.

Fundamentally, Shell’s legal setback underscores the complexity of LNG contract structures and the high-stakes nature of supply obligations during volatile markets. Despite this, Shell remains one of the strongest integrated oil and gas companies globally, supported by consistent cash flow, disciplined capital spending, and a growing pivot toward LNG, which remains central to its long-term energy strategy. While the legal outcome introduces short-term uncertainty, Shell’s diversified operating base and strong balance sheet soften the potential financial impact. The broader LNG market remains tight, and long-term demand projections favor established suppliers like Shell.

Technically, Shell’s chart is showing strength. Price has broken above a key multi-year resistance zone around $74–$75, completing a clean breakout pattern. The stock has respected a rising trendline since 2021, signaling steady long-term bullish structure. With momentum building above resistance, the next potential upside target aligns with the $82–$85 zone. A successful retest of the breakout area could confirm continuation. If price slips back into the range, support sits at $70 and deeper support around $62. Overall, bullish bias remains intact.