Don't count oil out in 2022

OIL prices have recently seen significant volatility, with prices down over 15 per cent from their peak in October. The sharp price decline was mainly led by Omicron fears, a Covid-19 variant which has spread rapidly across the globe and threatens the global economic recovery.

However, despite Omicron fears, the US Energy Information Administration (EIA) still forecasts a global shortfall in crude of 1.18 millions of barrels per day (mb/d) this month, though they expect this shortfall to narrow to just 0.35 mb/d next year.

Short-term demand supported by cold weather