This autumn has been pretty good to investors in oil & gas giant Royal Dutch Shell (LSE: RDSB). That’s because the Shell share price has soared since late August. Indeed, over the past three months, this energy stock was the fourth-best performer in the FTSE 100 index. Here’s why…
The Shell share price slumps and soars
In spring 2018, almost two years before the Covid-19 crisis, the Shell share price was gushing high. On 21 May 2018, it peaked at 2,841p. But then this mega-cap stock went into steep decline. At the end of 2019, just as coronavirus infections were emerging, the shares closed out the year at 2,239.5p.
Alas, as Covid-19 infections swept the world, Shell’s shares went into steep decline as global stock markets tanked. At its 2020 low, the stock hit bottom on 28 October 2020, dropping to 845.1p. This followed a spectacular crash in the price of a barrel of Brent Crude oil from from $70 in January 2020 to under $16 in mid-April.
Today, as I write, the Shell share price stands at 1,649.4p, down 11p (-0.7%) on the day. This values the energy supermajor at £113.5bn. For the record, the stock has gained 15.7% over three months, 25.3% over six months, and 26.3% over one year. Nice.
What strengthened Shell?
One simple reason for recent rises in the Shell share price is the soaring price of oil. With OPEC+ members reluctant to pump more crude, the oil price has leapt over the past three months. Today, Brent Crude sells for around $82 a barrel, about $11 (+15.5%) higher than $71 three months ago. And that’s why RDSB has been pumped higher!