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U.S. Cuts Oil Demand and Price Forecasts on Omicron Fears

  • Europe’s response to rising Covid-10 cases is curbing demand
  • U.S. lowers domestic crude oil production forecast for 2022
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OPEC+ Pause or Cut Possible Next Month, Says Oil Analyst Sen
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The Biden administration’s efforts to lower energy costs may have gotten unexpected help from the latest coronavirus variant.  

As a result of travel restrictions following the outbreak of the omicron variant of Covid-19, the Energy Information Administration cut its projections for both global benchmark Brent and U.S. crude futures by nearly $2 a barrel for 2022, according to the Short-Term Energy Outlook. The agency also lowered its outlook for consumption of petroleum and liquid fuels in the fourth quarter and first quarter while raising its forecast for oil output from OPEC+ and the U.S.