Shell share price: Group gets US government permission to export lightly processed oil

on Jan 14, 2015
Updated: Feb 27, 2024
Listen

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Royal Dutch Shell Plc (LON:RDSA) has received US approval to export a very light form of crude oil which has undergone minimal processing, Reuters has reported. Shares in the Anglo-Dutch energy major have fallen so far in today’s trading.

According to the London-based news agency, Shell had been working with the US Department of Commerce’s Bureau of Industry and Security (BIS), which regulates export controls, on how to ship lightly processed condensate overseas. The move will test the US ban on exporting crude, imposed by Congress amid the 1970s energy crisis, which has been increasingly viewed as outdated.
The group said that the approval grants Shell freedom to move ahead with exporting condensate which qualifies as an exportable refined product as defined by the BIS guidance issued on 30 December. The guidance was issued to provide more transparency to companies awaiting rulings. The agency also told some companies that they should follow the lead of BHP (LON:BLT), which started selling ultralight crude from Texas back in November without explicit permission from the agency .

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

However, due to the recent collapse in oil prices, Shell said it would only start exporting processed condensate when it was sufficiently profitable. The group told Reuters: “The timing of any potential future export of this product will be determined by the economics of the transaction”.
As of 10:14 GMT, Shell’s share price was trading 1.42 percent down at 2,047.50p. The stock of Europe’s biggest oil company has declined over 12 percent during the past six months as part of a recent industry-wide downtrend with tumbling crude oil prices pressuring energy shares – Oil price decline continues on worries over downturn in global economic growth. According to CNN Money, the consensus forecast amongst 36 polled investment analysts covering Royal Dutch Shell has it that investors should buy shares in the company.
As of 11:06 GMT, Wednesday, 14 January, Royal Dutch Shell Plc ‘A’ share price is 2,051.25p.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Oil Bond Market Energy & Power Government Bonds Stock Market