Brijesh Patel, Ashitha Shivaprasad

(Reuters). Despite U.S.-led strategic oil releases, oil prices will remain elevated in next year. However, a Reuters poll revealed on Tuesday that OPEC+ is keeping a tight grip on supplies. But, a COVID-19 resurgence fuelled largely by Omicron could have a major impact on the outlook.

The average Brent price in 2022 was raised to $75.33 from $74.04. 75.33 was the new outlook for Brent 2022, up from $74.04.

This represents the highest benchmark projection for this year.

John Paisie of Stratas Advisors stated that while we expect OPEC+ to remain prudent in increasing barrels but doesn’t want oil prices above $80 for any prolonged period.

“OPEC+ continues to be concerned that U.S. shale producers will increase production as a result of higher prices.”

Forecasted to average $68.52 & $73.31 per barrel by 2021 and 2022, respectively, against October’s $68.62 & $71.21 consensus.

Oil price poll: https://fingfx.thomsonreuters.com/gfx/mkt/klpykdxnapg/Oil%20Poll%20Nov-Graphic.png

In 2021, demand was expected to grow by between 4.5 and 6.0 million barrels per hour (bpd), while it will rise by 3.3–5.0 million bpd in the next year. Asia led this growth.

Omicron and stockpile releases by the United States, along with other factors have caused oil prices to fall from the highs they reached in the recent past. [O/R]

The Organization of the Petroleum Exporting Countries, a group also known as OPEC+ will meet this week in order to review the Omicron variation’s effect and determine whether or not to alter its plan to increase production by 400,000 barrels each day from January to beyond.

Several analysts pointed out that although OPEC+ might limit an increase in production in response to stockpile release, rising coronavirus infections and U.S. shale potential could have an impact on prices next year.

Morgan Stanley (NYSE:) Monday’s first quarter 2022 Brent crude oil price forecast was cut to $82.50/barrel from $95. Omicron is threatening its demand forecast.