Despite fears about the Omicron variant of the coronavirus and rising global oil output, Raymond James Financial Inc. analysts are increasingly optimistic about strong crude prices through 2023.

Raymond James Outlook

“Our bullish oil view over the next few years not only remains firm, but we’re actually increasing our long-term price forecast,” the analysts, John Freeman and Justin Jenkins, said in a report Monday.

Freeman and Jenkins noted that, early in December, the new variant raised fresh demand worries across oil markets. At the same time, the Saudi Arabia-led Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies, aka OPEC-plus, agreed last week to boost production by 400,000 b/d in January, continuing a pace of monthly supply increases the cartel began in...