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Why Has Shell Stock Fallen 1% in Q2?

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Jun. 4 2019, Updated 10:02 a.m. ET

Royal Dutch Shell

Royal Dutch Shell (RDS.A) stock has fallen 1% sequentially in the second quarter. However, the fall is lower than the company’s peers. ExxonMobil (XOM), Chevron (CVX), and BP (BP) have fallen 12%, 8%, and 7%, respectively, in the second quarter. Equinor (EQNR), PetroChina (PTR), and Suncor Energy (SU) have risen 13%, 15%, and 5%, respectively, in the second quarter.

Integrated energy stocks have declined due to the fall in oil prices and equity markets in the second quarter. WTI has fallen 11% in the second quarter. The SPDR S&P 500 ETF (SPY), which is a broader market indicator, has fallen 3% in the second quarter.

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Shell stock has fallen in the second quarter

Lower oil prices and weaker equity markets have mainly impacted Shell stock. Oil prices have decreased due to escalating US-China trade tension. Trade concerns between the US and Mexico are adding to the woes. Investors are concerned about how the trade tensions could impact global economic growth and oil demand in 2019. Higher oil supplies from the US have impacted oil prices. Equity markets have weakened in the second quarter due to ongoing trade wars.

On May 2, Shell posted its first-quarter earnings, which beat analysts’ estimate. Shell posted decent first-quarter earnings. The stock reacted positively to the news. To learn more, read Shell’s Q1 Earnings Beat Estimates, Segmental Earnings Rose.

Shell has been impacted by weaker oil prices and equity markets. However, Shell’s better-than-expected first-quarter earnings and stronger financials have partly offset the fall in its stock.

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