BP and Shell shares slide 22% as London energy rout deepens

BP Plc shares dropped to 472 pence on Friday, down 22% from their 2026 high, while Shell Plc slipped to 2,900 pence from a year-to-date peak of 3,592, extending a selloff that has deepened through the second quarter.

"Energy stocks are being repriced as the market weighs the risk of sustained lower crude prices against the sector's still-strong cash flows," said Omar Tariq, an energy analyst covering European majors. "The magnitude of the decline in BP and Shell suggests investors are pricing in a structural shift, not just a cyclical downturn."

BP's decline to 472p marks its lowest close since Feb. 27, accelerating a slide that has erased roughly a quarter of the gains the stock had built in the first two months of the year. Shell's drop to 2,900p represents a 19% retreat from its 2026 peak of 3,592p, with both stocks now trading at levels not seen in four months.

The selloff in Europe's two largest oil companies carries implications for the broader FTSE 100, where energy stocks account for roughly 12% of the index weighting. A sustained decline could weigh on the benchmark's performance through the third quarter, particularly if crude prices fail to find a floor.

The rout comes as the energy sector faces headwinds on multiple fronts. Brent crude prices have softened in recent weeks as concerns over global demand growth mount, while regulatory pressures in Europe have intensified. BP and Shell have both outlined energy transition strategies that require significant capital investment, creating tension between near-term shareholder returns and long-term repositioning.

A Four-Month Slide Accelerates

The current downturn marks the most sustained period of weakness for London-listed oil majors since the broader energy selloff of 2024. BP shares have now given back all of their gains from the January-February rally, when the stock briefly touched 605p. Shell's trajectory mirrors that pattern, with the shares unable to hold above the 3,500p level since early March.

This article is for informational purposes only and does not constitute investment advice.