Stocks in Volatile Measures: Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR), Royal Dutch Shell (NYSE:RDS-A)


Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) knocking active thrust in leading trading session, shares a decrease of -5.47% to 11.92 with around 62.22 Million shares have changed hands in this session. Brazil’s President Michel Temer may scrap a market-based pricing mechanism used by state-run oil firm Petrobras (PETR4.SA) and revert to selling all fuel below costs after a trucking strike that almost paralysed the nation, a government source told Reuters on Tuesday.

Talk of temporarily lowering prices on just diesel to end the havoc the nine-day strike brought on Latin America’s largest economy sent Petrobras shares plunging 15 percent on Monday.

Truckers are protesting a 50 percent increase in diesel prices under the two-year-old Petrobras policy of almost daily adjustments following international prices. The source, who asked not to be named because he was not authorized to speak publicly on the matter, said the pricing policy worked well when oil prices (CLc1) (LCOc1) held steady for years at $40-50 a barrel, and the Brazilian currency (BRBY) (BRL=) remained stable against the dollar.

But oil has recently surged to $70-80 a barrel boosted by plummeting Venezuelan production, strong global demand and looming U.S. sanctions on Iran. Meanwhile Brazil’s currency has weakened 11 percent this year on political uncertainty. The stock is going forward its fifty-two week low with 56.91% and lagging behind from its 52-week high price with -30.58%.

Similar, the positive performance for the quarter recorded as -15.97% and for the year was 33.42%, while the YTD performance remained at 16.05%. PBR has Average True Range for 14 days of 0.79.

Shares of Royal Dutch Shell plc (NYSE:RDS-A) swings enthusiastically in regular trading session, it a loss of -1.25% to close at $67.32. Friends of the Earth plans to file a lawsuit against Royal Dutch Shell (RDSa.L), accusing the oil company of failing to act on climate change, the environmental activist group said on Tuesday.

Shell has set out “ambitions” to halve carbon emissions by 2050 and expand in renewables, but the Anglo-Dutch company has come under pressure from investors and activists to reduce its carbon footprint and comply with the 2015 international Paris climate agreement.

Friends of the Earth informed the oil and gas company last month it planned to take legal action if Shell did not reduce investment in fossil fuels and cut greenhouse gas emissions to zero by 2050.

In response, Shell Company Secretary Linda Szymanski said in a letter, dated May 28, seen by Reuters, that the company did not believe that these claims had merit. “Nor do we consider that the courts provide the right forum to advance the global energy transition.”

A Shell spokeswoman confirmed the letter had been sent and its content.

Sam Cossar-Gilbert of Friends of the Earth International said in a statement: “Yesterday Shell rejected our demands, so now we will take them to court, formal summons will be issued shortly.” The lawsuit will be filed in the Netherlands. Moving forward to saw long-term intention, the experts calculate Return on Investment of 4.30%. The stock is going forward its fifty-two week low with 29.68% and lagging behind from its 52-week high price with -8.85%. RDS-A last month stock price volatility remained 1.20%.


Please enter your comment!
Please enter your name here