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Shell Warns of Record Writedown as Virus Curbs Oil Demand

  • Sees impairment charges on lower long-term oil, gas prices
  • Oil-product sales could fall by almost half from last year
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WATCH: Shell’s writedown gives investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil.(Source: Bloomberg)
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Royal Dutch Shell Plc said it will write down between $15 billion and $22 billion in the second quarter, as the company gave investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil.

The impairment is the firm’s largest since Royal Dutch Petroleum Co. and Shell Transport & Trading Co. merged in 2005, and shows how the pandemic has left no part of the energy giant’s sprawling business unscathed. Shell lost money from pumping oil, fuel sales fell and shipments of everything from liquefied natural gas to petrochemicals suffered.