Shell Share Price Crossed a Key Level. Here’s Why it is Surging

The Royal Dutch Shell share price has had a spectacular comeback in the past few days as investors focus on the rising crude oil prices. The RDSB stock is trading at 1,909p, which is the highest level since January 31st, 2020. It has risen by more than 138% from its lowest level in 2020.

Shell latest news

Royal Dutch Shell is fulfilling its promise to change its name. As you recall, last year, the company announced that it will remove the name Royal Dutch from its name. The change reflected the fact that the company will no longer be a Dutch company anymore. 

It is part of a strategy that will see it give up its Amsterdam listing. Instead, it will be headquartered in the United Kingdom and its stock will be traded in London and New York.

The Shell share price also jumped because of the rising tensions between Russia and Western countries. They have accused Russia of planning an invasion of Ukraine. As a result, the crude oil price has jumped to $90 per barrel. 

This increase is simply because Russia is the third-biggest oil producer in the world after the US and Saudi Arabia. Therefore, if the US add sanctions on Russia, there is a likelihood that oil prices will rise because of supply concerns. 

Most importantly, the Shell share price has outperformed BP because of its sizable market share in the natural gas industry. Ideally, if western countries add sanctions on Russia, the country will retaliate by blocking gas exports to Germany, which will push gas prices higher.

Shell share price forecast

The daily chart shows that the Shell stock price has been in a strong bullish trend in the past few months. The rally accelerated this week as investors reacted to the ongoing tensions. The stock is trading at 1,909p, which was the highest point since January 2020. It is above the 50-day and 200-day moving averages. Indeed, the two averages have made a bullish crossover pattern. 

Therefore, there is a likelihood that the Shell share price will continue rising as bulls target the key resistance at 2,000p. This view will be invalidated if the stock drops to