Rising coronavirus cases driven by the new Omicron variant are expected to curb but not derail a global recovery in oil demand, the International Energy Agency (IEA) said Tuesday in its latest Oil Market Report for December.  

Global Crude Prices

IEA noted that cases are climbing across many regions of the world in the wake of Omicron outbreaks that emerged last month, including in the United States. Temporary government restrictions on travel to slow the new strain’s spread, coupled with consumer hesitancy to fly while scientists study vaccine effectiveness against Omicron, will likely slow demand for jet fuel and gasoline derived from oil late in 2021, the global energy watchdog said.

IEA forecast global crude demand would grow by 5.4 million b/d this year, a downward revision of 100,000 b/d...