Shell share price forecast after exiting its Gazprom partnership
The Shell (LON: SHEL) share price will be in the spotlight on Tuesday as investors react to the rising crude oil and gas prices and the company’s exit from Russia amid the Ukrainian invasion. The stock is trading at 1,972p, which is a few points below this year’s high of 2,079p.
Shell quits RussiaCopy link to section
On Sunday, BP announced that it will quit the Russian market by selling its stake in Rosneft, one of the biggest companies in the country. The British multinational cited the ongoing invasion in Ukraine.
On Monday, other western companies like Equinor, Shell, and the Norwegian sovereign wealth fund announced that they too will exit the market.
In a statement, Shell said that it will exit its joint venture with Gazprom, one of the biggest companies in the country. The company also said that it will exit its relationship on the Gazprom project that will connect Russia to Germany.
Nord Strom 2, Gazprom, and Rosneft have all been sanctioned by western countries like the United States, United Kingdom, and Germany. According to the company, the Russian investment was worth about $3 billion.
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Analysts expect that exiting the Russian market will have an impact on the Shell share price because of how profitable the ventures have been for the company.
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Still, there are several reasons why the stock could keep doing well in the near term. First, the company is one of the most profitable oil and gas companies in Europe. In the most recent quarter, the company said that its revenue rose to more than $85.28 billion while its earnings per share rose to 73 cents. For the full year, the company’s profit was more than $19.29 billion.
Shell will also benefit from the rising prices of oil and natural gas. Crude oil prices have risen to about $100. It also boosted its dividend by 4% and simplified its structure.
Shell share price forecastCopy link to section
The daily chart shows that the Shell stock price has been in a bullish trend in the past few months. Along the way, the stock jas moved above the 25-day and 50-day exponential moving averages.
The stock moved above the key support level at 1,815p and the ascending trendline shown in black. Therefore, while the shares will be a bit volatile, there is a likelihood that the bullish trend will continue this month as bulls attempt to move above the resistance at 2,075p.