The Royal Dutch Shell share price has undergone an intraday correction after a strong bull run that resulted from the continued uptick in crude oil prices.
Following the conclusion of the OPEC + meeting, crude oil prices topped $81 amid more robust demand and hurricane-induced supply constraints. The intraday decline occurred due to the increased US oil stockpiling, as indicated by the EIA crude oil inventories report.
The Energy Information Administration said that US crude oil stockpiles rose by 2.3million barrels, which exceeded the expected buildup of 800,000 barrels for the week that ended on 1 October. US crude oil imports rose by 483,000 barrels more than the previous week while gasoline production decreased, hence the buildup.
The momentum on crude oil prices continues to point upwards, showing that the Royal Dutch Shell price action could be more of a profit-taking correction than a change in sentiment.
Royal Dutch Shell Share Price Outlook
The price action was rejected at the 27 February/4 March 2020 low at 1712.8, leading to a pullback on the day. The pullback now targets the 1628.2 support. If the bulls cannot defend this level, the corrective decline could extend to 1594.0, leaving the 1521.6 price mark (8-17 March highs) as the next target to the south.
On the flip side, the bulls need to clear 1712.8 to resume the uptrend, targeting 1785.4 and 1833.4 as the immediate targets to the north. This move has to stem from dip-buys at the support levels mentioned earlier.
Royal Dutch Shell Price Chart (Daily)
Follow Eno on Twitter.