The Shell (LON: SHEL) share price is hovering near its all-time high as investors react to the demand and supply dynamics as the crisis in Ukraine escalates. The stock is trading at 2,020p, which is slightly below its all-time high of 2,330p. It has risen by over 150% from its lowest level in 2020.
Crude oil and natural gas recovery
Shell, formerly known as Royal Dutch Shell, is one of the biggest energy groups in the world. The company has a market capitalisation of more than $194 billion and has operations around the world.
The company has been in the spotlight in the past few months. For example, in 2021, Daniel Loeb announced that he had acquired a stake in the company and started to pressure the management to break itself up. The company rejected the proposals, saying that its oil business was an important one because its cash flows are used to fund its clean energy business.
Second, the company also announced a major change of its corporate structure. It moved its headquarters from the Netherlands to London and changed how its stock is listed. Today, it is primarily listed in London and New York. As a result, the end of its dual structure was a good thing for shareholders.
Third, the Shell share price has risen in the past few days even after the company announced that it will exit its Russian business. Russia is an important market for the company because of its many gas stations and upstream projects.
The main reason why Shell share price has done well is that the price of crude oil and natural gas has risen sharply because of the soaring demand and low supplies. Therefore, analysts expect that the company will boost its dividends and share buybacks this year. It has a trailing dividend yield of 0.94% and a forward yield of 3.75%.
Shell share price forecast
The daily chart shows that the Shell share price has been in a strong bullish trend in the past few months. The rally accelerated when it moved above the key resistance level at 1,780p, which was the highest level in October last year. It has moved above the 25 and 50-day exponential moving averages (EMA).
At the same time, the MACD has formed a bearish divergence pattern. Therefore, the bullish trend will be confirmed if the stock manages to move above the key resistance level at 2,060p, which was the year-to-date high.
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