Shell Shares Surge to Level Not Seen in Five Years

Shell shares have hit to their highest level since 2008 as oil prices surge following the outbreak of the war in Gaza and Israel.

The energy and petrochemical company’s stock shares rose to $68.03 on Monday. Shell's shares previously peaked 2018 but fell steeply during the early months of the pandemic, but so far this year have risen 21.6%. They're also 169% from 2020 lows. 

Rising oil prices and confidence in its new CEO, Wael Sawan, are among the reasons behind the company’s increased stock price, according to reports.  

Shell's profits plummeted during the second quarter of 2023 from record its record highs of a year earlier due to lower energy prices. In July, Sawan said that Shell still had “strong operational performance and cash flows” during the period, and the company notably increased its dividend payments by 15% this summer to keep its share price up amid declining earnings, The Messenger previously reported. 

“New Shell CEO Wael Sawan is sending the right message—that returns will take priority over growth—as he seeks to close the valuation gap with U.S. peers,” Morningstar analyst Allen Good wrote of the company in August after Shell's gloomy earnings report. “While it might not be enough, we believe the key actions accompanying the message, including reduced spending and increased distributions, are positive and crucial steps.”