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Shell to write down as much as $22 bln

An update ahead of second quarter results for Royal Dutch Shell have revealed just how big a hit it's taking.

The oil giant said on Tuesday (June 30) that it will write $22 billion off the value of its assets.

That's after a sharp lowering of its oil and gas price outlook.

The decision also comes as the Anglo-Dutch company reviews its operations in a bid to reduce greenhouse gas emissions to net zero by 2050.

Shares in Shell, which has a market value of over $126 billion, traded down slightly after the news.

The world's largest fuel retailer said it expects a 40% drop in fuel sales in the second quarter from a year earlier.

That reflects the major fall in consumption due to global travel restrictions.

Shell's writedown mirrors rival BP's move to take up to $17.5 billion off the value of its assets.

BP is preparing to shift to low-carbon energy.

Shell reduced its expected average benchmark Brent crude oil price for 2020 to $35 a barrel, down from $60.

BP cut its long-term Brent forecast to $55 a barrel from a previous $70.