Omicron’s variant emergence will allow the global oil supply to surpass the rate of consumption, easing supply tightness in the recent months.
- The IEA cut its 2022 supply outlook from non-OPEC producers by 100,000 barrels per day and lowered its demand forecast by the same amount, stating it expects an increase in COVID-19 cases to hamper recovery in the global demand.
- In its monthly market report, IEA stated that air travel and the consumption of jet fuel would be affected the most by the Omicron variant.
- Concerns that the global economic recovery and resurgence in global oil demand would cause inflationary pressures pushed the oil-producing nations to tap their strategic oil reserves in November.
- Oil prices have fallen sharply on fears of the new COVID-19 variant on the global economy.
Brent crude rose 0.5% to stand at $74.77 per barrel, and U.S. crude futures rose by 0.5% to stand at $71.62 per barrel.
CL1! up +0.46%, USOIL up +0.44%Source: IEA
