OPEC+ meeting ahead
Shell is a leading integrated energy company that offers several services. It has a leading market share in the upstream, midstream, and downstream. Shell is also one of the biggest oil and gas traders in the world, where it competes with the likes of Vitol and Trafigura.
In addition, Shell is one of the biggest petrochemical companies in the world, where it competes with the likes of BASF, INEOS, and ExxonMobil.
Shell makes most of its money when the prices of oil and gas are rising, which explains why the stock has jumped by over 40%. Crude oil price has risen by more than 20% this year while natural gas has risen much higher.
The next key catalyst for the Shell share price will be the upcoming OPEC+ meeting that is scheduled for this week. According to Bloomberg, Saudi Arabia and Russia are considering making substantial supply cuts in a bid to boost oil prices. As a result, Brent has managed to rise above the important resistance level at $90 while West Texas Intermediate (WTI) has risen to above $85.
Shell will also benefit from the Winter season when the demand for natural gas will rise. Most European countries will need a constant supply of gas as they increase their use. This is important since Shell is one of the biggest producers and marketers of natural gas internationally.
The next key catalyst for the Shell share price will be the upcoming update on its marketing division that is scheduled for Thursday this week. The company will provide its outlook of this important division.
Another thing to watch is the decision by EU member states to agree to cap Russia’s oil prices as they seek to punish Putin and Russia.
Meanwhile, the stock will then react to the upcoming Q3 results that are scheduled for October 27th of the year. Analysts expect that the company did well in the quarter even as oil prices wavered.
Shell share price forecast
The daily chart shows that the Shell stock price has been in a bullish trend in the past few weeks. Along the way, the stock has remained above the ascending trendline that is shown in yellow.
Shell has also remained above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly above the neutral level at 50. Therefore, the stock will likely continue rising as buyers target the year-to-date high of 2,453p
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