Omicron Variant Poses a Demand Puzzle for Oil Forecasters By Bloomberg – Investing.com

Omicron Variant Poses a Demand Puzzle for Oil Forecasters By Bloomberg – Investing.com

(Bloomberg) -- Oil forecasters have parted company on their views about demand in the coming months, as the omicron variant of the Covid-19 virus spreads rapidly around the world. And producers have emerged as the surprising bulls in the latest round of estimates.

The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries have all updated their oil market forecasts for the period to the end of next year. Each is trying to get to grips with the impact of the latest coronavirus strain, identified only in late November and already accounting for 20% of confirmed cases in England.

One change stands out: their view of oil demand in the first quarter of 2022.