Crude oil is expected to surge in November as market participants are counting on a rise in hydrocarbon prices.
Since the beginning of 2021, Brent crude has gained 65%. Experts highlight several reasons for the hydrocarbon market’s strong dynamics, including a steady pace of economic recovery worldwide after a series of lockdowns as well as rising oil demand.
In October, the Brent benchmark surged by 8% to the high of $86.2 per barrel. The bullish commodity market is not hindered by significant risks posed by the fourth wave of the COVID-19 pandemic that is now tightening its grip on the world. Large economies, including China, have managed to gain control over the pandemic and continue to recover, boosting oil demand.
Analysts also suggest that oil prices are growing on expectations of energy shortages ahead of an extremely cold winter season of 2021–2022. Such a trend is typical for most European countries.
At the same time, OPEC+ does not plan to raise oil production. The cartel and independent oil producers stick to their agreement to keep oil output at the level of 400,000 barrels per day in November. Further pricing in the oil market depends on the cost of natural gas. After all, there is a direct correlation between natural gas and crude oil prices.
According to preliminary forecasts, the Brent benchmark could trade at $90 per barrel in November.
