Sometimes a stock just picks the right day to show off. Shell PLC (SHEL) hit a fresh 52-week high Tuesday, riding a wave of surging crude oil prices driven by supply disruptions in the Middle East.
The broader market wasn't invited to the party. The Nasdaq fell 0.61% and the S&P 500 dropped 0.53%, while the Energy Select Sector SPDR Fund (XLE) gained 2.25%. When energy is the only green thing on the screen, you know where the money went.
Crude oil jumped 4.3% to $105.75 per barrel Tuesday as Middle East supply constraints deepened and Libyan output faced fresh disruptions, according to Trading Economics.
Shell Reshapes Its U.S. Power Portfolio
Separately, Shell is reshuffling its U.S. power holdings through two transactions.
Shell Energy North America agreed to sell its interests in RISEC Holdings LLC to Constellation Energy Generation LLC for $715 million. RISEC owns a 609-megawatt natural gas-fired power plant serving the New England market.
On the other side of the ledger, Shell agreed to acquire Hunlock Creek Generating LLC, which owns 169 MW of natural gas-fired generation capacity in Pennsylvania. The deal expands Shell's footprint in the PJM power market and supports its energy trading operations.
Both transactions need regulatory approval and are expected to close in the first quarter of 2027.
Technical Analysis
Shell remains in a strong uptrend. The stock trades 5.7% above its 20-day simple moving average, 10% above its 50-day SMA and 18.1% above its 200-day SMA.
The moving averages are also bullishly aligned. The 20-day SMA sits above the 50-day, while the 50-day remains above the 200-day.
Momentum, though, looks stretched. Shell's relative strength index stands at 76.18, above the 70 level typically viewed as overbought.
The stock has also broken above its previous 52-week high of $97.63. That level could now serve as support if shares pull back.
Analyst Outlook
The stock carries a Buy consensus rating with an average price forecast of $109.57.
Piper Sandler maintained a Neutral rating and raised its price forecast to $100 on Sept. 3. Wells Fargo maintained an Equal-Weight rating and raised its forecast to $105 on July 31.
SHEL Price Action: Shell shares were up 2.67% at $99.02 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to market data.
