Omicron Will Slow Oil Demand Recovery but Not Destroy It, IEA Says

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Omicron Will Slow Oil Demand Recovery but Not Destroy It, IEA Says
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Omicron’s emergence will allow the supply of oil to overtake the rate at which the world is consuming it, easing the supply tightness of recent months, the International Energy Agency said

The Omicron variant’s emergence will allow the supply of oil to overtake the rate at which the world is consuming it, easing the supply tightness of recent months, the International Energy Agency said Tuesday.

Fears that the global economic recovery and resurgence in oil demand would feed inflationary pressures prompted major crude-consuming nations to tap their strategic oil reserves in November, just as Omicron infection rates began to gather speed. . However, there is a gap between the two energy bodies’ assessment of global oil production in the year ahead.

That steadily rising output may combine with slightly lower demand than previously expected to create a 1.7 million barrel a day surplus in the first quarter of 2022.Early data suggest the Omicron variant may be better at evading vaccine-generated antibodies.

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