In a remorseful statement on March 8, Royal Dutch Shell PLC (LON:RDSB) announced that it has stopped buying all hydrocarbons from Russia. This comes after it emerged that as recent as last week, the company purchased oil from Russia at a bargain.
The company had earlier announced that it was ending all partnerships with Gazprom, and it abandoned the Nordstrom project. These actions were taken in support of Ukraine.
While the actions are set to cost SHEL a fortune, the company will enjoy some reprieve from the record-high oil and gas prices. This means that the financial performance of the company may not feel the heat of the new developments.
In the capital markets, the general support of oil and gas companies will ensure that the stock does not trend downwards, as would be expected after such news.
SHEL turns bullish at $52
Source – TradingView
SHEL traded at $52.94, with the premarket price of $52.99 already showing signs of an upward adjustment. The price is above all moving averages, with MA 10 at $51.10. The RSI, currently at $60.35 has also turned up pointing to a possible acceleration puce.
Similarly, the MACD indicates double evidence of a bullish trend with the MACD line above the signal and the divergence growing on the positive side above the oscillator.
Summary
SHEL is building bullish momentum. The announcement to stop all purchases of Russian hydrocarbons will be compensated by rising prices for oil and gas. Thus, Shell is currently a buy due to the current developments.
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