NAZIA AFREEN

The Omicron corona variant may decrease global demand for oil, but the market will be more comfortable in 2022, as per International Energy Agency. It said that the new containment measures put in place to stop the virus's growth are likely to have impact on the economy that past Covid waves, not due to widespread vaccinations. The IEA, which unites oil-consuming countries and advises governments on energy policy, said it has reduced its estimation for global oil use for this year and next year by an average of 100,000 barrels per day due to high limits on international travel. The IEA predicted that global oil production will exceed demand in December, owing to rising output in the United States, Canada, Brazil, and Saudi Arabia, together form the OPEC+ band of oil producers. This could lead in a 1.7 million barrel in the first period of 2022 and a 2.0 million barrel in the second period. "If that happens, 2022 may shape up to be more comfortable," the IEA warned.