This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Omicron Oil Demand Impact Will Be ‘Mild and Short-Lived,’ OPEC Says
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Omicron Oil Demand Impact Will Be ‘Mild and Short-Lived,’ OPEC Says
Markets

Omicron Oil Demand Impact Will Be ‘Mild and Short-Lived,’ OPEC Says

Editorial Board Published December 13, 2021
Share
Omicron Oil Demand Impact Will Be ‘Mild and Short-Lived,’ OPEC Says
SHARE

The Omicron variant’s impact on global oil markets won’t be as seismic as initially feared, because governments and businesses are now better adapted to dealing with the coronavirus, the Organization of the Petroleum Exporting Countries said Monday.

In its closely watched monthly report, OPEC left unchanged its global oil demand and supply forecasts for 2021 and 2022. However, the cartel said that some of the recovery in consumption that it had expected to take place in the final months of this year would shift into early 2022, due to the emergence of the highly-transmissible Omicron variant.

“The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage Covid-19 and its related challenges,” the Vienna-based group said, adding that rising vaccination rates were proving important in lessening the variant’s economic impact.

Oil prices sharply dropped late last month and early in December as the new variant emerged, with global benchmark Brent crude and U.S. crude ending November with their largest percentage declines since March 2020.

Crude prices have recovered somewhat in recent weeks, as investors and analysts increasingly think Omicron will have a shallower impact on global transport and oil demand than previous variants.

Early data suggest the Omicron variant may be better at evading vaccine-generated antibodies.

Brent crude, the global gauge of oil prices, fell 1% to $74.39 a barrel Monday, having pared some of its recent losses by rising more than 5% in December. U.S. crude futures ended the day down 0.5% at $71.29 a barrel, having rallied nearly 8% this month.

These prices rises have occurred despite major oil consumers tapping their strategic oil reserves for additional supply. OPEC has opted to press ahead with plans to raise production by 400,000 barrels a day in January.

Aside from the uncertainty generated by the pandemic, supply-chain issues and rising inflation in some of the world’s wealthiest countries present challenges to the oil market, the cartel said. The Biden administration in particular had complained about the inflationary effects of higher oil prices.

Inflation could spark central bank action from major economies, OPEC said, and the prospect of a reduction in monetary stimulus “could potentially lead to additional challenges for highly indebted emerging economies, with foreign-currency debt.”

OPEC raised its demand estimate for its own oil output by 200,000 barrels a day for this year and next. It expects supply from non-OPEC members to remain constrained for now. The organization estimates investment by non-cartel countries in their oil exploration and production at around $350 billion for this year and next, roughly half of the amount spent in 2014, “thereby limiting growth potential.”

The chances of one potential supply development with the ability to drag oil prices lower appear to be receding. Analysts and traders have long been wary of the possibility of the Biden administration resurrecting the Iran nuclear deal. However reports of significant differences between the two sides suggest the prospect of the U.S. lifting its embargo on Iranian oil exports is unlikely for now.

Write to David Hodari at [email protected]

Corrections & Amplifications
OPEC estimates investment by non-cartel countries in their oil exploration and production at around $350 billion for this year and next. An earlier version of this article incorrectly put that figure at $350 million. (Corrected on Dec. 13, 2021)

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the December 14, 2021, print edition as ‘OPEC Expects Omicron’s Impact On Oil to Be Mild.’

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Manchin not sold on Biden’s mammoth bill, demands Dems tell the truth about its price Manchin not sold on Biden’s mammoth bill, demands Dems tell the truth about its price
Next Article States, cities impose new COVID-19 rules amid winter spike States, cities impose new COVID-19 rules amid winter spike

Editor's Pick

Jordan Peterson Hospitalized, ‘Close to Loss of life’ Amid Weird Eating regimen, ‘A long time of Mould Publicity,’ Daughter Says

Jordan Peterson Hospitalized, ‘Close to Loss of life’ Amid Weird Eating regimen, ‘A long time of Mould Publicity,’ Daughter Says

Studying Time: 3 minutes Based on the most recent replace from his daughter, writer and psychologist Jordan Peterson is coping…

By Editorial Board 5 Min Read
Maggie Baugh: Every part We Know About Keith City’s Rumored New Girlfriend
Maggie Baugh: Every part We Know About Keith City’s Rumored New Girlfriend

Studying Time: 3 minutes Is Keith City hooking up together with his…

4 Min Read
Danielle Fishel Rebuffs Whitney Leavitt After ‘DWTS’ Gaffe
Danielle Fishel Rebuffs Whitney Leavitt After ‘DWTS’ Gaffe

Studying Time: 2 minutes Did Danielle Fishel simply put Whitney Leavitt in…

4 Min Read

Oponion

Private Equity Backs Record Volume of Tech Deals

Private Equity Backs Record Volume of Tech Deals

Private-equity firms had a blockbuster year for deal making, largely…

January 3, 2022

Newsom needs to cease California well being care enrollment for immigrants with out authorized standing

By TRÂN NGUYỄN Underneath the plan,…

May 14, 2025

R. Kelly’s Chicago trial on federal sex charges set Aug. 1

CHICAGO (AP) — A federal judge…

October 20, 2021

Greenland’s outraged about Trump’s newest ‘extremely aggressive’ transfer

President Donald Trump is sending his…

March 24, 2025

Costco recollects sure wine over danger of bottles spontaneously shattering

Storch Advisors CEO and former Toys"R"Us…

September 16, 2025

You Might Also Like

Meme inventory mania 2.0
Markets

Meme inventory mania 2.0

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

4 Min Read
Traders have fun Japan’s ‘Iron Lady’ election win
Markets

Traders have fun Japan’s ‘Iron Lady’ election win

Federated Hermes CIO Stephen Auth weighs in on Japan's first elected feminine prime minister and provides an concept on what…

3 Min Read
Tesla teases Tuesday announcement with social media movies
Markets

Tesla teases Tuesday announcement with social media movies

Niles Funding Administration founder and portfolio Dan Niles discusses Tesla’s potential $1 trillion compensation plan for Elon Musk on ‘The…

5 Min Read
Gold FOMO may push steel to ,000
Markets

Gold FOMO may push steel to $4,000

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

3 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?