The shell logo was shown on May 03, 2024 in Austin in Texas.
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American activist investor Elliott Investment Management has taken a short position against British oil Shell as part of the global protection program.
Move, which was the first reported From the British newspaper The Times on Thursday comes soon created Hedge Fund Paul Singer took almost 5% stake in Shell’s combat rival, BPS.
It is said that Elliott collected a bet of £ 850m ($ 1.1 billion) against Shell, The Times reportedquoting applications with the authority of financial behavior.
The position is allegedly worth 0.5% of Shell’s shares, and it is considered to be the highest short position published in relation to the energy main in almost a decade. The short position refers to the bet that the stock of the company will fall worth.
Elliott and Shell refused to comment when they were contacted by CNBC on Friday.
Shell’s shares traded on Friday for 0.5% lower at about 11am in London (7 hours ET). The shares in the list in London are on an increase of about 13.6%.
Earlier this month, either reported That Elliott took a short position of about 670 million euros ($ 722 million) in a French oil giant Totaleengies. Totalengies spokesman did not immediately respond to a comment request on Friday.
“When the Hedge Fund creates a long position – under the influence or not, because they often use levers with these positions – they are needed for the purpose of managing the risk to create the opposite position, ie short, in a similar company,” Maurizio Carulli, analyst of energy and material in Quilter Cheviot, said on Friday.
“The most likely reason for this is that this is an extraordinary place for BP One, so both Total and Shell were created as short risk management,” Carulli told CNBC through video calls.
“Otherwise, if for any reason the market is moving against them – for example, things like oil prices or anything – should have some protection,” he added.
Elliott’s moves come as European energy guidelines double on fossil fuels in an effort to increase the return of shareholders.
Shell recently announced Plans to increase shareholders’ refund and consumption reduction as its liquidated natural gas (LNG) strengthens. BP and Norway EqualIn the meantime, they also highlighted the appropriate plans for reducing renewable sources in favor of oil and gas.
