"New containment measures put in place to halt the spread of the virus are likely to have a more muted impact on the economy versus previous Covid waves, not least because of widespread vaccination campaigns," the IEA wrote in a report earlier this month.
The agency, which monitors energy market trends for the world's richest countries, said it expects demand for road transportation fuels and petrochemicals to continue to post healthy growth.
The lone exception? The IEA did downgrade its forecast for jet fuel due to restrictions on international travel imposed by governments trying to stop the spread of Omicron.
Others are even less concerned about Omicron. The Organization of the Petroleum Exporting Countries (OPEC) did not change its demand forecast for 2022 in its monthly report for December.
"The impact of the new Omicron variant is expected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges," OPEC analysts wrote in the report.
The forecasts underscore just how dependent the world is on fossil fuels, despite efforts to address the climate crisis and huge investments in electric cars, renewable energy and cleaner fuels.
OPEC expects oil demand to increase around the world next year, led by countries including China, India and the United States.
SOURCE: CNN
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