Driven by a stronger global economy, higher mobility and loosened restrictions, oil demand is expected to hit an all-time high of 100.8 million barrels per day, according to a Saudi investment bank.
Jadwa Investment said that demand will be 4 percent higher in 2022 when compared to the previous year.
However, the omicron outbreak could induce a setback in demand for the first quarter of 2022, before going up in the following three quarters.
The investment firm pointed out that the traditional centers of oil demand — such as the US, China, other Asia and India — will account for 62 percent of the growth in demand this year.
One issue Jadwa mentioned was the inability of some OPEC+ members to meet their production targets. In the final quarter of 2021, the alliance raised its production by 240,000 barrels per day, noticeably below the expected average of 800,000 barrels per day.
As for oil prices, the Riyadh-based firm increased its 2022 Brent oil price forecasts to $76 per barrel, up from a previous estimate of $71 a barrel.
The rise in the projection was attributed to shortfalls in OPEC+ spare capacity and drops in commercial oil activity.