The US Energy Information Administration (EIA)’s December Short-Term Energy Outlook (STEO) remains subject to heightened levels of uncertainty related to the ongoing recovery from the COVID-19 pandemic. Notably, the emergence of the Omicron variant raises uncertainty about the level of energy consumption throughout the world compared with last month’s forecast. Brent crude oil spot prices averaged $81/bbl in November, a $3/bbl decrease from October 2021 but a $38/bbl increase from November 2020. Crude oil prices have risen over the past year as result of steady draws on global oil inventories, which averaged 1.4 million b/d during the first three quarters of 2021. However, following the identification of the new COVID-19 Omicron variant, which raised the possibility that petroleum demand could decline in the near term, crude oil prices fell significantly on Nov. 26, and the Brent spot price began December below $70/bbl. High COVID-19 case counts in […]