What happened

Shares of Schlumberger (SLB 1.95%) jumped 10.7% in November, according to data provided by S&P Global Market Intelligence. Rising oil prices and a couple of analyst upgrades helped drive up the shares of the energy company last month.

So what

The price of crude oil rallied in November, which buoyed oil-related stocks. Overall, the global oil benchmark, Brent, rose 3.7% for the month, enjoying its biggest gain since April. One of the factors driving up the price of crude for much of the month was optimism that OPEC would extend its production reduction agreement. That pledge has helped bolster the price of oil in recent years, which has given oil companies the confidence to approve new projects, providing additional work for service companies like Schlumberger.

An offshore drilling rig at sunset.

Image source: Getty Images.

The other factor that helped boost Schlumberger's stock last month was a couple of analysts' upgrades. Tutor Pickering flipped its view on the oil service stock, changing its rating from sell to buy while setting a $40 price target (still about 10% above the current price). Deutsche Bank, meanwhile, initiated coverage on the stock with a buy rating and a $42 price target. The bank made that move due to its belief that the international oilfield service markets are "firmly in recovery mode." Further, it believes that Schlumberger is the "primary beneficiary," since it has "nearly four times the international earnings power of its nearest competitor."

Now what

With last month's rally, the price of Brent is up nearly 20% on the year. That's giving oil companies the confidence to approve more international and offshore drilling projects, which is benefiting companies like Schlumberger with higher exposure to those markets. Because of that, it could have more upside ahead as those markets continue improving.