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Stock Strategist Industry Reports

Oil Market Asks: Omicron Who?

We've raised our global consumption forecast for 2022, but our 2023 outlook is unchanged.

When the omicron variant of COVID-19 appeared in December, we refrained from making any changes to our oil demand forecast, given the lack of data. Our decision appears correct as the rapid growth of omicron cases is not resulting in a concurrent increase in hospitalizations, which is typically a more important metric for whether to impose lockdowns or travel bans. Longer term, this dynamic could be bullish for demand as it results in greater natural immunization and increased vaccination.