Lukoil does not expect strong shocks from omicron strain for oil market

The impact of the omicron strain on oil demand is not yet fully understood, but it will not cause a shock drop in demand, Report informs citing TASS that Lukoil vice-president Leonid Fedun told reporters.

In general, it is not yet clear how the emergence of a new omicron strain will affect oil demand, he said. "But it is already clear that there will be no such shock as it was initially," he said.

“In our budget [for 2022], we proceed from $50 per barrel,” he said in response to a related question.

On November 26, the World Health Organization (WHO) designated the strain of coronavirus B.1.1.529, found in southern Africa, with the Greek letter omicron.