The Royal Dutch Shell share price jumped by more than 4.8% on Tuesday as investors cheered the latest OPEC+ meeting. The RDSB share price closed at 1,700p, which was about 10.5% above the lowest level in December.
The Shell share price did well in 2021. It managed to rise from a low of 1,195p in January to a high of 1,793. That was a 50% increase. This rally was attributed to the overall recovery of the global economy and the fact that oil and natural gas prices surged.
Shell had an eventful year. The biggest news of the year was that the company was moving its headquarters from Amsterdam to London. That was major news that came a few years after Unilever also ended its dual-listing structure.
Shell also managed to come back to profitability as oil and gas prices rose. As a result, the management to increase the company’s dividends in 2021.
The company also sold most of its Permian Basin operations to ConocoPhilips in a $9 billion deal. That was a strong exit considering that the company bought the assets for less than $4 billion. It will distribute the proceeds of these funds to shareholders.
Looking ahead, the Shell share price will react to the overall trends in the oil and gas market. Also, it will react to the latest news on Omicron. Recent data shows that the symptoms of the variant are relatively mild.
The daily chart shows that the RDSB share price has been in a strong bullish trend in the past few months. The stock formed a double-bottom at 1,535p in December and tested the upper chin of this pattern at 1,705p on Tuesday after the OPEC+ meeting. It also moved slightly above the 25-day and 50-day moving averages while the Relative Strength Index has tilted upwards.
Therefore, there is a likelihood that the Shell share price will keep rising as bulls target the key resistance at 1,800p. On the flip side, a drop below the key support at 1,600p will invalidate this view.
This post was last modified on %s = human-readable time difference 08:07