GO
Loading...

Enter multiple symbols separated by commas

Royal Dutch Shell's Shares Increase on Tie-Up Talk: Traders

Shares in oil giant Royal Dutch Shell rose more than 4% before closing at their highest level in six months on Thursday as traders cited rumours of a possible tie-up with a rival.

"There's a mutter of a BP/Royal Dutch tie-up," said one trader.

Other traders also noted the BP rumour while one analyst reported talk of a tie-up with Russia's Gazprom, which the analyst said may have stemmed from a research report from Shell's house broker ABN Amro.

Shell and BP representatives declined to comment. ABN could not immediately confirm the report.

Shares in BP closed 2.4% up at 570-1/2 pence while other oil stocks also gained thanks to a rise in oil prices. The DJ Stoxx European oil and gas sector index was up 2%.

One analyst said Shell shares were also likely supported by comments from a spokesman that the Anglo-Dutch oil giant had started work to restore 170,000 barrels per day (bpd) of crude oil production in Nigeria, after a protest at a major pipeline hub hit output.

While industry sources said BP's former CEO had considered a tie-up with Shell a few years ago, BP sources said new CEO Tony Hayward planned to focus on fixing BP's operational issues rather than big strategic actions in the coming months.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.