By Samuel Indyk
Investing.com – Shares in oil giant Royal Dutch Shell (LON:RDSa) were trading near the top of the FTSE 100 on Monday, supported by reports the company is considering a sale of its holdings in the US Permian basin.
Reuters reported that the FTSE 100 behemoth is considering selling all or part of its holdings in the largest US oil field, which account for around 6% of its total oil and gas output last year.
The assets could be worth as much as $10bln.
Energy transition
The news comes as Shell attempts to transition to cleaner fuel and energy, aiming for net-zero carbon emissions by 2050.
Part of the plan is to gradually lower its oil and gas output and boost spending on renewable energy, hydrogen, and low-carbon technologies.
Higher oil prices
The rise in Shell’s share price also comes on the back of higher oil prices. WTI and Brent crude futures are both trading higher on Monday, supported by an improving demand outlook as global travel curbs and lockdown restrictions continue to be eased slowly.
Last week, both OPEC and the IEA released their monthly oil market reports, and both said demand is expected to surge in the second half of the year despite the uncertainties surrounding the pandemic.
Year-to-date, the two major oil benchmarks are both trading higher by over 40%, while Shell’s share price has risen around 12% in that time.
At 09:50BST, shares in Royal Dutch Shell were trading higher by 2.3% at 1,453.9 pence per share.