Royal Dutch Shell share price is down by more than 1%, becoming the worst-performer in the FTSE 100. The RDSA shares are down by more 1.45% and trading at 1,318p while the RDSB are down by 1.38% and trading at 1,255p. Similarly, BP shares have fallen by more than 0.45%.
What happened: Royal Dutch Shell shares are falling after the company lost a court case in the Hague about a Nigerian oil leak. The court said that the company was liable for an oil leak that happened in Niger more than 10 years ago. It is still deliberating on another case and there is a possibility that it will lose. In its defense, the company said that the leak was caused by sabotage in the volatile region.
Shell share price is also falling as investors wait for the company’s results that will come out on Thursday this week. Analysts believe that the oil supermajor had a relatively strong quarter helped by higher prices. The results will come two days after BP delivers its earnings.
Turning to the daily chart, we see that the Royal Dutch Shell share price has been under intense pressure lately. The class B stock has fallen from the January high of 1,458p to the current 1,261. This price is at the lower side of the broadening right-angled and ascending pattern, which is usually a bullish signal.
Therefore, there is a possibility that the price will bounce back. If it does, the next level to watch is the upper side of the wedge at about 1,500p. However, a move below 1,200p will invalidate this trend.
