The emergence of the Omicron mutation will allow oil supply to surpass the rate at which people consume oil, easing supply constraints in recent months, according to the International Energy Agency (IEA).
The IEA cut its oil supply estimates from non-OPEC producers by 100,000 barrels per day and cut its demand estimates by the same amount, saying it expects rising coronavirus cases to halt the recovery in global demand.
Air travel, and in particular the fuel consumption of aircraft, will be more affected by the Omicron mutation, the IEA said in its monthly report.
But overall, the mutation “will temporarily slow down, but will not stop, the recovery in oil demand,” the energy service said.
Fears that the global economic recovery and the revival of oil demand will fuel inflationary pressures prompted oil-rich nations to turn to their strategic oil reserves in November, as Omicar’s cases rise sharply.
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