Shell and TotalEnergies: Sharp Decline Amid Market Pressure

Shares of oil and gas producers Shell and TotalEnergies faced strong headwinds as oil prices plummeted on Tuesday afternoon. For the first time since December 2021, the price of Brent crude, the North Sea oil benchmark, dropped below $70 per barrel. By late afternoon, a barrel was priced at $69.42, marking a decline of $2.41 compared to the previous day.

The price for a barrel of West Texas Intermediate (WTI), the U.S. oil benchmark for October delivery, also fell by $2.65, settling at $66.06 per barrel.

These drops continued the trend of recent oil price cuts. Last week, Brent crude saw a reduction of approximately $5 per barrel. While prices briefly stabilized on Monday, this did not last.

Concerns remain that weak economic developments in the U.S. and China will dampen demand for oil. Recently, a series of economic data points have been disappointing. However, the Organization of the Petroleum Exporting Countries (OPEC) has made only minor adjustments to its forecasts for global oil demand. According to OPEC’s monthly report released on Tuesday, global crude oil consumption is expected to rise by 2 million barrels per day this year.

OPEC now projects an average daily demand of 104.2 million barrels for this year, slightly revised from the previous estimate of 104.3 million barrels per day. For 2025, OPEC’s forecast remains largely unchanged, expecting demand to reach around 106 million barrels per day.

The steep drop in oil prices has put significant pressure on the stock prices of Shell and TotalEnergies. Despite this, both companies are maintaining solid profits thanks to their strong cost structures, even at the current price levels. However, with the charts showing a noticeable downward trend, neither stock presents an immediate buy opportunity. Investors who already hold shares in these two dividend powerhouses should keep an eye on the stop-loss levels set at 26 euros for Shell and 49.00 euros for TotalEnergies.