By Steve Goldstein
Royal Dutch Shell was pulling up the benchmark FTSE 100 on Monday, after a report the energy producer might sell its largest U.S. oil field.
The report from Reuters that Shell might sell all 260,000 acres of its holding in the Permian Basin lifted its stock /zigman2/quotes/204253697/delayed UK:RDSB -1.06% /zigman2/quotes/207682964/composite RDS.B -1.37% by 2%. Shell was weighing the move as part of its shift toward lower-carbon ventures , the report said.
The Permian Basin accounted for 6% of Shell’s oil and gas production last year, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. “It’s another sign of shifting sands at Shell as it faces increasing investor pressure to map its future as the net zero 2050 pledge looms,” said Streeter.
Airlines stocks struggled however, as the U.K. was set to announce a four-week delay to the full reopening of the economy, with British Airways owner International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG +3.89% slipping 3%. Informa /zigman2/quotes/207253704/delayed UK:INF +2.41% , the conference organizer, also fell 3%, and hotels operators InterContinental Hotels /zigman2/quotes/202865596/delayed UK:IHG +1.47% and Whitbread /zigman2/quotes/207954631/delayed UK:WTB +2.70% also fell.
By contrast, food-delivery service provider Just Eat Takeaway’s /zigman2/quotes/216303066/delayed UK:JET +0.62% shares rose 2% on the increase in stay-at-home expectations.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.16% rose 0.3% in afternoon trade.