The Royal Dutch Shell share price is in a tight range as investors wait for the outcome of the ongoing OPEC+ meeting and as crude oil price jumps to the highest level in three years. The RDSB stock price is trading at 1,438, where it has been in the past few days. It is about 70% above the lowest level in September last year.
OPEC+ meeting. Royal Dutch Shell is a leading oil and gas company, meaning that its financial performance depends on the performance of crude oil. However, recently, the Shell share price has lagged the performance of oil. For one, while the shares have barely moved this year, Brent has jumped by almost 50% and is at the highest level in almost three years.
Shell has also underperformed other oil and gas companies like ExxonMobil and Chevron. The Vanguard Energy ETF (VDO) has jumped by more than 50% this year. This underperformance is mostly because of the recent setbacks the company has faced. For example, it recently lost a case in the Netherlands that mandated it to cut emissions by 2030. Investors are also concerned about its transition to clean energy.
The Shell share price will next react to the outcome of OPEC+meeting. The cartel is expected to announce that it will increase production by between 400k and 500k barrels every day. This will be a relatively small increase that will likely push oil prices higher.
Shell bulls expect that the company will publish strong quarterly when it releases later this month. The firm will also likely boost its share buybacks and dividends because of the strong prices.
The daily chart shows that the Royal Dutch Shell share price has gone nowhere recently. The stock has moved slightly above the 25-day and 50-day exponential moving averages (EMA). It has also formed a small rectangle pattern. It has also formed an inverse head and shoulders pattern that is usually a bullish signal.
Therefore, there is a possibility that the shares will rebound later this month. This prediction will be validated when it moves above the important resistance at 1,524p. On the flip side, a move below the support at 1,286p will invalidate this prediction.
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