The Royal Dutch Shell share price will be in focus as the fears of the Omicron variant ease and oil and gas prices jump. The RDSB share price is trading at 1,645p, which is about 7.25% above the lowest level this month.
Shell and other oil majors like BP and ExxonMobil have struggled in the past few weeks. This has happened as the price of crude oil and natural gas has turned lower after the spectacular recovery last month. Brent has fallen from above $85 while West Texas Intermediate (WTI) has dropped to about $67. Natural gas price has crashed by more than 38% from its highest level this week.
Still, there is a likelihood that the Shell share price will rebound in the near term. For one, fears of the Omicron variant have eased slightly in the past few days. Experts say that the variant has mild signs than the previous variants. At the same time, many countries are expected to carry as usual without implementing major lockdowns.
The RDSB share price is also reacting to internal issues. The company is moving its headquarters from the Netherlands to the UK. At the same time, an activist investor has asked the company to break itself apart. Indeed, data shows that oil and gas companies that have broken themselves have done better. For example, the Eni share price has done better than Totalenergies, BP, and Shell.
Shell share price forecast
The daily chart shows that the Shell share price has done relatively well in the past few days. The stock has managed to move above the 23.6% Fibonacci retracement level. It has also risen above the 25-day and 50-day moving averages.
However, the shares have formed a falling channel pattern. This means that there is a likelihood that the stock will continue falling in the near term. In my view, I expect that the shares will fall to about 1,410p, which is about 14% below the present level.
