The Motley Fool

The Shell share price jumps nearly 20% in 3 months. Here’s why

Oil pipes in an oil field
Image source: Getty Images.

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.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

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!

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.