Weekly Crude Oil Review: Crude Oil Broadly Supported

1 Jan 2022 , 02:21 PM

WTI crude futures closed up around 60% in 2021, marking strongest annual performance since 2009 as firm equities and continued global economic recovery boosted sentiments for the commodity. The demand for oil remained relatively firm throughout the year despite the recent Covid outbreaks coupled with lockdown and travel restrictions, exacerbated by the emergence of the delta and omicron variants. The US EIA has recently noted that for 2022 as a whole, it expects that growth in production from OPEC+, of US tight oil, and from other non-OPEC countries will outpace slowing growth in global oil consumption, especially in light of renewed concerns about COVID-19 variants. It stated that global consumption of petroleum and liquid fuels will average 96.9 million b/d for all of 2021, which is a 5.1 million b/d increase from 2020. The global consumption of petroleum and liquid fuels will increase by 3.5 million b/d in 2022 to average 100.5 million b/d.

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