China’s hardline Covid lockdown measures, along with some engineering woes, have heightened the risk of further delay to delivery of the floating production, storage and offloading vessel for Shell's Penguins field development in the UK North Sea.

The delay will potentially hurt Shell’s earnings against the backdrop of surging oil prices as Shell earlier confirmed that the Penguins “redevelopment is an attractive opportunity with a competitive go-forward break-even price below $40 per barrel".

On Monday, WTI crude was at $107.86