Image source: Olaf Kraak via Shell plc
Last month, Shell (LSE:SHEL) was one of the worst performing FTSE 100 stocks. The Shell share price fell by 9.55%, pushing it down to 2,419p. Given that the 52-week lows aren’t that far away at 2,345p, value investors will likely be starting to get very interested.
Here’s why the stock fell so heavily during the month.
A slippery slope
One of the large impacts was the fall in the oil price. The West Texas Intermediate crude oil benchmark price fell by 10.2% during September. This was due to factors including oversupply and weak consumption by China.
It’s not a surprise to me that the fall in the price of oil almost perfectly matches the fall in Shell stock. Shell is one of the world’s largest oil and gas superpowers. Given it looks after all stages of the process, from exploration through to marketing the refined product, the price of oil really matters. If oil surges to $100 per barrel, revenue for Shell…
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