Omicron Labor Force Impact a Factor to Monitor

(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)

In this week’s preview of what to watch in oil and gas markets, Rigzone’s regular energy prognosticators highlight Omicron’s impact on the labor force, geopolitical factors, oil price trends and more. Read on below to find out the specifics.

Rigzone: What developments/trends will you be on the lookout for this week?

John Stilwell, Grant Thornton, Principal-in-Charge, Energy - Power and Utilities: Short term negative impacts to growth in the context of the overall recovery continues to be the theme. The widespread impact of the Omicron variant to the labor force and consumer spending will be a factor to monitor in the next four weeks. Increased instances of extreme weather related to climate change and ongoing geopolitical factors continue to provide bumps in the road leading to full market recovery and an overall growth outlook. We continue to monitor these external and internal market forces in the context of the long-term recovery trend.

Mark Le Dain, Vice President of Strategy with the oil and gas data firm Validere: Covid numbers have started to roll over in many major states. The impact of this combined with the lower quarantine periods should likely result in a rebound in product demand after a few weeks that were heavily impacted by Covid. 

Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: Evidence of tight oil supplies and rising demand will have to continue for this rally to gain any steam. Otherwise, look for a profit-taking sell-off.

To contact the author, email andreas.exarheas@rigzone.com