Even as the Omicron variant of the coronavirus spreads rapidly and threatens to at least stall travel and economic activity, forecasters are sticking to bullish expectations for demand in the year ahead while eyeing potential supply challenges.

Brent crude, the international benchmark for oil prices, eclipsed $88/bbl in Wednesday trading, reaching a high last seen in 2014 as markets absorbed expectations for strong consumption rates across North America, Europe and Asia this year.

The International Energy Agency (IEA) said Wednesday the global economy, while briefly dinged late in 2021 and early this year by Omicron, is weathering the latest virus storm far more nimbly than previous iterations of the pandemic. The global energy watchdog said oil demand would climb throughout...