Where now for the BP and Shell share prices as oil prices hit profits?
Both oil majors fell victim to lower production and weaker oil prices which weighed on third quarter profits, sending shares downward.
![BP and Shell](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_oil_barrel_Brent_WTI_321456.png/jcr:content/renditions/original-size.webp)
BP and Shell have seen their share prices weighed down by lower production and weaker oil prices, which have also hurt both companies’ profits.
Last week, BP and Shell published their third quarter earnings, with underlying profits down 32.5% and 15% respectively, reflecting challenging market conditions faced by both oil majors.
Looking to trade BP and Shell? Open a live or demo account with IG.
BP and Shell shares remain resilient despite falling oil prices
Brent crude fell to an average of $62 a barrel in Q3, down from more than $75 a barrel a year ago, driven by weaker demand and a slowdown in global economic activity.
Despite weakening oil prices, BP and Shell shares have remained resilient, with both stocks down just 5% over the last 12 months of trading.
You can go long or short BP and Shell with IG using derivatives like CFDs.
Dividends under pressure due to declining oil prices
Both BP and Shell are under pressure from investors to grow cash flows, reduce their debt piles and continue to return value to shareholders with rising dividends.
However, the price of oil will ultimately determine their ability to meet investors’ demands. But with political and economic instability remaining high, the price of the black stuff is fickle.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Shares-global-component-banner.jpg/jcr:content/renditions/original-size.webp)
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.