By Bryce Elder and Neil Hume
Published: February 23 2009 08:42 | Last updated: February 23 2009 22:54
BP and Royal Dutch Shell weighed on the FTSE 100 on Monday as the benchmark closed within 70 points of its November six-year low.
Earnings concerns sent the stocks in the opposite direction to oil prices.
We believe the oil sector is entering a steeper and longer downturn than either the oil or equity markets imply and that large-cap oil shares are not as defensive as currently priced, BarCaps Tim Whittaker said.
The former Lehman Brothers analyst saw no oil price recovery before 2012 and the cost of maintaining dividends consuming all of BP and Shells earnings for the next two years.
He pointed out that industry costs had doubled since 2004, when oil last traded around $40 a barrel. This led BarCap to forecast earnings 40-50 per cent below the market consensus.
Until the much lower earnings and cash flows we foresee are priced in, we expect the large-cap oils to underperform, he said.
BP lost 2 per cent to 453½p, its lowest since October, while Shell B shares fell 2.3 per cent to a two-month low of £15.58.
Together the pair took 17 points off the FTSE 100, which closed lower by 38.33 points, or 1 per cent, to hit a three-month low of 3,850.73.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
