Brent crude futures hit their lowest level in decades in April, falling below $20 per barrel. They’ve staged a comeback to trade above $41 per barrel, but that’s still well below where prices started the year.
Shell said Tuesday that it expects to take a charge of between $15 billion and $22 billion in the second quarter as a result of the shifting market conditions. It’s scheduled to report its financial results for the quarter on July 30.
The huge slump in demand for oil and gas this year is pushing many of the industry’s biggest companies to accelerate a shift to cleaner fuels. Shell has committed to achieving net zero carbon emissions from its own operations by 2050.
Demand for crude is starting to recover as countries restart their economies. But a potential resurgence of the virus poses a major risk to any forecasts, helping to keep a lid on prices even as a supply glut eases.