Oil market and SHELL PLC's capital market day!

The oil price has been moving sideways for several weeks. Fears of greater recessionary tendencies continue to keep the price under pressure. Expectations of a rapid economic recovery in China, the associated higher demand for oil, and lower output from OPEC members have not automatically translated into a higher oil price. The global economy is proving to be more robust and the recession is "lagging behind". Central banks are planning further braking maneuvers and they want a slowdown, which is not good for the oil market. Our forecasts are based in part on anticipating a cold winter and an end to the rate hike cycle. In addition, oil and gas companies have invested little more in costly exploration and the extraction of new reserves for years; after all, they are being asked to become emissions neutral. Companies like SHELL are therefore increasingly able to deliver high profits, cash flows and attractive dividends.

SHELL recently held a capital markets day in New York and, on balance, is looking to give investors an even greater share of its resurgent business. The management of the oil and gas company announced further share buybacks and higher dividends. The dividend is to be increased by +15%. In addition, SHELL plans to acquire treasury shares worth at least USD 5 billion in the second half of the year. Group CEO Wael Sawan then also reiterated the goal of making SHELL an emissions-neutral company by 2050. The question remains whether it will still be as profitable then. In any case, on June 26, the quarterly dividend was paid out in the equivalent of USD 0.2875, or EUR for shares traded in Holland, without tax deduction. SHELL is considered an excellent dividend stock and the comments and announcements made during the Capital Markets Day continue to make the shares an attractive long-term investment. Our price target remains unchanged at GBP 29.50!