Shell Share Price: Oil Prices Hit Highest Weekly Gains Since October

Shell share price climbed earlier on Tuesday amid upbeat economic sentiment. The stock has jumped by 5% in the past week and more than 7% in the past three months. The Shell stock ended its last trading session 0.60% higher at 2366.5p.

Oil Prices are Soaring

Oil prices edged higher on Tuesday as China’s latest easing of Covid-19 restrictions spurred hopes of a recovery in fuel demand. China announced on Monday that international travelers would no longer need to quarantine upon arrival on the mainland starting January 8, 2023.

The announcement from Beijing saw oil prices add to their Friday’s gains. Oil prices jumped higher on Friday, recording their biggest weekly gains since October. The rise in oil prices has been intricately linked to Moscow’s announcement that it would cut crude output in response to the G7 price cap on Russian exports.

According to the RIA news agency, Russia’s Deputy Prime Minister Alexander Novak stated that the country would cut oil output by 5% to 7% in early 2023 on the back of price caps. As of the time of writing, US West Texas Intermediate (WTI) crude was trading 0.92% higher at $80.29 per barrel, while Brent crude oil rose by 0.99% at $84.75 per barrel.

Despite the rise in oil prices, winter storms are affecting the logistics and production of petroleum products and shale oil. Several of the largest US refineries shut down due to the harsh weather conditions. As such, both crude oil output and demand could plunge over the next few days, affecting the Shell share price.

Shell Share Price Outlook

The daily chart shows that the Shell share price has been on a strong uptrend for the past few days. The stock has managed to move above the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) is 5 points below the neutral level.

Therefore, with the rise in oil prices, the Shell stock price is likely to continue rising. If this happens, the next resistance levels to watch for the bulls will be at 2457.5p and 2565.5p. On the flip side, the bullish thesis would be invalidated by a move below the support level at 2238.5p.

Shell Price Chart

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