Shell PLC (NYSE:SHEL) stock hit a new 52-week high Tuesday as crude oil prices surged on supply disruptions in the Middle East.
The Nasdaq fell 0.61%, while the S&P 500 dropped 0.53%. Meanwhile, the Energy Select Sector SPDR Fund (NYSE:XLE) gained 2.25%.
Crude oil surged 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 U.S. Power Portfolio
Separately, Shell is reshaping its U.S. power portfolio 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.
Shell also agreed to acquire Hunlock Creek Generating LLC, which owns 169 MW of natural gas-fired generation capacity in Pennsylvania. The deal will expand Shell’s presence in the PJM power market and support its energy trading operations.
Both transactions require regulatory approval and are expected to close in the first quarter of 2027.
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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.
However, momentum 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 Benzinga Pro data.
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