By Kavya Guduru

(Reuters). Oil prices are expected to rise following a solid start to 2018, with increased geopolitical and supply risks. However, strong demand will rebound after fading fears of Omicron coronavirus.

Survey of 43 analysts and economists forecast that the average barrel would cost $79.16 per barrel in 2022. This is more than double December’s consensus at $73.57.

    was forecast to average $76.23 in 2022, versus the $71.38 forecast last month.

The Economist Intelligence Unit stated that oil can rise above $100 given the tight market conditions.

In 2022, demand was expected to grow by between 3-5 millions barrels per hour. Analysts see little impact from current COVID-19 spike.

Brent crude oil futures reached $90 per barrel last week for the first-time since 2014. This was due to concerns about the possible supply disruption from the standoff between Russia and the West, which is the largest producer of crude oil, over Ukraine.

Supply concerns were also increased by threats from Yemen’s Houthi group to the UAE.

If Russia invades Ukraine, oil prices could go up further, according to Marshall Steeves (IHS Markit analyst). Western sanctions can also have an impact on energy exports.

Goldman Sachs, NYSE: Morgan Stanley Recent forecasts by (NYSE:) for oil prices to rise above $100 in 2019 were based on the COVID-19 impact and disruptions that have occurred.

But Julius Baer analyst Norbert Rücker said that while current market nervousness could cause near-term price spikes, “supplies are largely artificially not structurally tight”.

Many analysts agreed that the Organization of the Petroleum Exporting Countries (or OPEC+) is likely to continue with its plan for a monthly increase in output of 400,000 barrels/day despite the fact that some of its members are experiencing capacity limitations.

The market may be affected by planned U.S. releases of Strategic Petroleum Reserves.