Shell shares: Strong stock market year begins with rise in oil prices!

On January 7, 2025, Thorsten Küfner from the investor magazine “Der Aktionär” reported on the positive development of Shell plc shares. The ISIN is GB00BP6MXD84, the WKN is A3C99G, and it trades on the London Stock Exchange under the ticker symbol R6C0.

Shell shares had a positive start to the new trading year, with the main reason for the increase being rising oil prices, which have reached their highest level in three months. Saudi Arabia plans to increase crude oil prices for its customers in Asia next month. This price increase is interpreted as an indicator of an expected shortage of supply on the Asian market. In addition, OPEC+ has again postponed its plans to increase production.

Market analysis and assessments

The rise in oil prices has significantly improved Shell's chart picture. Analysts view the stock as attractive thanks to its strong market position, solid balance sheet and cheap valuation. The stop for the old “shareholder” recommendation, which was first made in autumn 2020, remains at 26 euros.

Additionally, in a report by The shareholder confirmed that Shell shares also had a strong start to the new year. Oil prices rose on Monday, with the price of a barrel of North Sea Brent (delivery in March) at $77.11 (+66 cents since Friday) and the price of a barrel of US WTI (delivery in February) rising to $74.66 (+70 cents).

Experts see the price increase by Saudi Arabia as a sign of a shortage of supply in the largest market. OPEC+ has also postponed its plans to increase production again. Analysts support the dividend stocks, with Jefferies maintaining a Buy rating on Shell. Analyst Giacomo Romeo expects 2024 to be an up-and-down year in the energy industry, with important aspects such as deregulation and global demand growth. Shell is considered the company with the best capital allocation among the major European oil companies.