Royal Dutch Shell’s price action continued to rise on Wednesday, as the increase that oil inventories received from rising crude oil prices continues. Crude oil prices hit $ 80 as supply shortages in the US Gulf Coast’s production belt pushed prices higher. Oil stocks such as those of Royal Dutch Shell have been a big beneficiary.
Royal Dutch Shell’s pricing action is also being boosted by the recent announcement that it was selling its Permian business to ConocoPhillips for $ 9.5 billion in cash. The deal also sells its upstream assets in Egypt’s Western Desert fields to Cairn Energy and Cheiron Petroleum for $ 646 million. The deal is also expected to attract additional payments of $ 280 million over the next three years.
The Royal Dutch Shell price is currently trading up 1.1% and could still benefit if crude oil prices rise to reach Goldman Sachs’ projected price of $ 90 per barrel.
Royal Dutch Shell Price Outlook
Royal Dutch Shell’s price outlook on the daily chart shows price activity broke out of the ascending triangle and reached the movement completion point measured at 1650.8 (April 4, 2016 and May 31 low 2016). In the short term, the bulls must break through this level for a pursuit to 1754.4 and ultimately 1833.4.
On the other hand, a rejection at 1650.8 could trigger a corrective decline towards the broken edge of the triangle. This move must remove support for 1594.0, as well as 1521.6, before this boundary at 1483.2 can become accessible. Any drop in the listed support levels can be viewed as a potential short-term buying opportunity.
Royal Dutch Shellfish Price Table (Daily)
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