Oil rose by 11% during the month of October, as consumption continues to outpace supply and fuel the sustained draining of global stockpiles.
As the ongoing worldwide shortage of natural gas continues to influence a boost in demand for oil products, there is a strong likelihood for the continued decline of stockpiles in the coming months. Futures in New York rose by 0.9% on Friday.
Ed Moya, senior market analyst at Oanda Corp. explained that despite the oil shortage not being as extreme as analysts initially thought, it will not cease within the near future. “Crude prices could resume their bullish stance if OPEC+ stays the course with their gradual output increase plan,” Moya warned.
Since the beginning of the gas shortage, oil has proved to be one of the top-performing commodities across global markets. Major players such as Chevron Corp and Exxon Mobil Corp have reported earnings that exceed experts’ projections, thereby indicating the companies’ capacities to produce additional barrels.
Oil demand is also expected to continue to rise in the next quarter due to the resumption of travel activities during the post-pandemic economic recovery.
