Monthly Pricing - 01/12/2021

Brent crude peaked at $85.50/bbl in early November before falling to $75.40/bbl in response to renewed COVID-19 restrictions and potential coordinated SPR releases.

GBP depreciated throughout November, starting at 1.368 against USD, before dropping to its lowest since December 2020 at 1.337, against a 16-month high for USD.

The border crisis at the Belarus-Poland border deepened as Alexander Lukashenko threatened to cut off deliveries of gas to Europe, in retaliation to new EU sanctions.

Price Drivers

Supply IEA predicts production boost amid price easing. Low European demand raises oversupply concerns.
Demand Global demand set to surpass 2019 levels by March 2022. OPEC says high prices slowed pace of oil demand recovery.
Geo-Political Much of Europe re-imposes COVID-19 restrictions. COP26 sees major nations sign climate pledges.