Rise in oil prices amid the ongoing conflict in the middle-east has spiked Brent crude and other energy product prices.
- Due to continued war and strikes in the middle-east region, Brent crude is expected to cross $100 per barrel resulting in a bull run in oil stocks.
- Pennzoil Quaker State Company DBA SOPUS Products, a wholly owned subsidiary of Shell USA, will sell Jiffy Lube International to an affiliate of Monomoy Capital Partners for $1.3 billion.
- Shell will retain its Pennzoil Quaker State, Rotella and other Shell lubricants brands.
U.S. listed shares of Shell jumped more than 2% on Monday helped by rising oil prices as well as the oil producer divesting Jiffy Lube International and Premium Velocity Auto for $1.3 billion.
Pennzoil Quaker State Company DBA SOPUS Products, a wholly owned subsidiary of Shell USA, Inc., that comprises Shell's United States lubricants business, has entered an agreement to sell Jiffy Lube International and its subsidiary Premium Velocity Auto business to an affiliate of Monomoy Capital Partners for $1.3 billion.
Shell is the leading deep-water operator and largest producer of oil and gas in the U.S. Gulf of America and the largest buyer of U.S. LNG.
Details
The sale includes the Jiffy Lube brand and a network of franchised stores which are owned and operated by independent franchisees, in addition to franchised stores that are owned and operated by PVA.
Shell will retain its Pennzoil Quaker State, Rotella and other Shell lubricants brands, along with marketing, manufacturing and distribution of lubricants in the U.S. and Canada that serve consumer, commercial and industrial sectors.
"By capitalizing on a strong market opportunity, this divestment allows us to monetize an asset that is not central to Shell's lubricant's portfolio in the US and reinvest in opportunities that generate higher returns," said Machteld de Haan, President, Downstream, Renewables and Energy Solutions, Shell plc.
The transaction is expected to close in the second half of 2026, subject to regulatory approval and other closing conditions.
Oil Stocks In Focus
Oil stocks have been in focus ever since war broke out between U.S.-Israel and Iran as it has led to blockade of a critical sea route of Strait of Hormuz through which almost 20% of global crude and LNG passes.
Due to continued war and strikes in the middle-east region, Brent crude is expected to cross $100 per barrel resulting in a bull run in oil stocks.
How Did Stocktwits Users React?
Retail sentiment around SHEL trended in ‘neutral’ territory amid ‘high’ message volume.
Shares in the company have risen 17% year-to-date.
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