Shares in Royal Dutch Shell (RDSB) were buoyant on Tuesday despite a fall in oil prices after producers’ cartel OPEC and its affiliates failed to come to a consensus on production curbs at their meeting yesterday.
The shares were up 2.8% to £12.93, extending their gains since late October when they traded at less than 900p.
The company has been helped by improving oil prices and its shares were only knocked off course mildly by a negative preview of its fourth quarter results which came out shortly before Christmas.
This announcement, with big impairments and weak output flagged, has ramped up the pressure ahead of Shell’s investor day on 11 February when there will be intense focus on the company’s medium-term strategy.
And, in particular, how it will balance competing pressures around maintaining a dividend while transitioning from fossil fuels to greener sources of energy.
Berenberg analyst Henry Tarr commented: ‘As we look into 2021 and beyond, we remain positive about the outlook, underpinned by rising oil prices and already attractive spot Asian LNG (liquefied natural gas) prices.
‘The capital markets day on 11 February will also give the company the chance to lay out its strategy in more detail.’
