City awaits Royal Dutch Shell’s strategic review

Oil giant Royal Dutch Shell will announce a strategic review on Tuesday.

The market will be looking for news on upcoming projects, cash flow targets and potential disposals. Analysts at Credit Suisse said that 2011 is a “transition year”, with a slew of mega-projects due to start in 2012. The City will also seek clarification over why capital expenditure has been higher than forecast. There are fears that this may signal high cost inflation in the sector.