The Royal Dutch Shell share price is up by less than a percentage point in today’s trading session. For the past few months, the gas and oil industry has come under pressure due to oil shortages being experienced around the world.
These shortages have pushed the oil and gas prices to record highs, which has also seen consumers bear most of the brunt as oil companies pass the cost to them. However, these companies, including Royal Dutch Shell, have seen their profits grow substantially with the rising gas and oil prices.
For instance, earlier this month, it indicated that its profits were more than fivefold in its last quarter, totalling an impressive $18 billion. The huge profits saw the company introducing a share buyback of more than $6 billion, which is likely to see shareholders benefit greatly.
With the expected share buyback and an oil and gas industry that does not look to be slowing, my Royal dutch shell share price prediction expects the prices to continue going up for the next few trading sessions. One of the reasons that will see continue to see the company’s price rising is Europe’s search for alternatives to Russia’s oil and gas.
Six months into the invasion of Ukraine by Russia, the gas prices in Europe continue to break records amid concerns of shortages. As winter approaches, the demand for the commodity will go up, which will only mean prices continue to up. Companies such as Royal Dutch Shell will likely see their profits continue to rise as they race to meet the high demand for the product.
Looking at the chart below, my share price prediction expects the prices to the 2,500p price level in the next few trading sessions. There is a high likelihood that by the end of next month, the Royal Dutch shell price will be trading above the 3,000p price level.
This post was last modified on Aug 26, 2022, 15:13 BST 15:13