Following the significant retracement downwards yesterday, the prompt Brent futures contract has seen a steady morning, opening around high $83/bbl levels and gradually gaining to reach $84.39/bbl, before retracing to trade around $84.16/bbl at 10:00 BST. In the headlines today, Devon Energy Corp has revised its production guidance for 2024 upwards following expectation beating first-quarter earnings. The company’s production surpassed projections, offsetting the impact of weak natural gas prices. With a focus on the Delaware basin in the Permian, the shale producer reported $730 million in core earnings for Q1, translating to $1.16 per diluted share, surpassing average analyst estimates of $1.11 per share, as per LSEG data. In separate news, a group of significant institutional shareholders in Shell has urged other shareholders to back a resolution advocating for more robust climate action. According to the Financial Times, the authors of the resolution include Dutch activist investor group Follow This, Amundi, Axa Investment Managers, and 25 others; combined together, these 27 shareholders own a 2.5% stake in the supermajor. Shell has committed to reducing its Scope 1 and 2 emissions by 50% by 2030 from 2016 levels. However, earlier this year, it adjusted its Energy Transition Strategy, now targeting a 15-20% reduction in its net carbon intensity by 2030 compared to 2016, shifting from its previous goal of a 20% cut. The front and 6-month Brent futures are at $0.67/bbl and $3.69/bbl, respectively.
