Shell share price: analysts remain bullish as countdown is on over environmental concerns

Shell Share Price

The Shell share price (LON:RDSA) has seen some strong action since the middle section of July. At 1,417.60p per share, it is up by 8.86% year-to-date. While oil prices are strong, the spectre of the company’s carbon emissions will not go away, which creates difficulty in assessing the oil giant’s future prospects.

Oil

Having been as high as $76 in July, the price of crude oil is now below $70. The recent highs in the price of oil bodes well for major producers such as Shell. This could help to explain why analysts provided a collectively bullish outlook for the FTSE 100 company.

Analysts

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Perhaps surprisingly, analysts have taken a liking to Shell. Stockopedia reported that five analysts out of nine gave ‘Buy’ recommendations, while four said to ‘Hold’. Zero analysts out of the nine advised selling.

The Environment

Climate change is an issue that will not go away, whether Shell likes it or not. Oil companies such as Shell remain among the largest producers of carbon emissions in the world. Pressure is being ramped up – in some cases lawsuits – on said companies, from activists, investors and other groups.

This is something investors in Shell should be wary of, although there is no ongoing lawsuit as of now. Over a ten year period, BP and associates paid over $70bn into mitigating the impact of an oil spill.

As ever, timing the market is a difficult to do, but there are significant downsides to being in the oil industry, especially going back over a long period of time. Investors in the Shell share price should be wary of this possibility.

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