The start of 2022 has seen Omicron surge, driving COVID levels high in many major economies. Oil prices have risen by 5 percent, with analysts believing the predicted oversupply may not be as high as previously believed. The demand is set to grow even further, barring any new mass lockdowns.
In 2022, the oil market is oversupplied and demand is growing. This leads to a drop in prices, but only for a short period of time. The oversupply will grow even greater, leading to lower prices again.
There is no doubt that supply will exceed demand in the future, analysts predict. OPEC+ will continue to unwind its production cuts and non-OPEC+ producers such as the United States will increase their supply of oil at $80 a barrel, which means that global crude oil production is set to grow both from OPEC+ producers and those outside the pact.