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The world could consume more oil in 2022 than ever before




But here’s a reality check: the world could consume more oil in 2022 than ever before.

Global energy demand rebounded sharply this year as pandemic restrictions eased and are expected to increase further in 2022.

The International Energy Agency expects global oil demand to rise by 3.3 million barrels a day next year to 99.5 million barrels a day. This would coincide with the previous demand record in 2019, before the pandemic.

“New containment measures in place to stop the spread of the virus are likely to have a quieter impact on the economy compared to previous Covid waves, mainly due to widespread vaccination campaigns,” the IEA wrote. in a report earlier this month.

The agency, which monitors energy market trends in the world’s richest countries, said it expects demand for fuels and petrochemicals for road transport to continue healthy growth.

The only exception? The IEA has lowered its forecast for aircraft fuel due to restrictions on international travel imposed by governments trying to stop the spread of Omicron.

Others are even less concerned about Omicron. The Organization of the Petroleum Exporting Countries (OPEC) did not change its demand forecast for 2022 in its December monthly report.

“The impact of the new Omicron variant is expected to be mild and short-lived as the world becomes better equipped to handle COVID-19 and its related challenges,” OPEC analysts wrote. in the report.

Forecasts underscore the world’s dependence on fossil fuels, despite efforts to address the climate crisis and major investments in electric cars, renewable energy and cleaner fuels.

OPEC expects oil demand to rise worldwide next year, led by countries such as China, India and the United States.

But remember, even though the world consumes more oil in 2022 than ever before, the green transition is still underway.

Some of the largest oil companies are trying to figure out how they fit into a greener future. To learn more about this, take a look at this excellent story by my CNN Business partner Julia Horowitz.

First-time home buyers are even rarer

Home sales in the United States in November rose from the previous month buyers were quick to take advantage of low interest rates, reports my CNN Business partner Anna Bahney.

Prices continued with double-digit annual jumps, as inventory remained at historic lows. According to a report by the National Association of Realtors, the challenge of affordability of buying a home pushed the share of first-time buyers in the market to historic lows.

After a slight slowdown in late summer, November marked the third consecutive month of an increase in sales of existing homes, which include single-family homes, townhouses, condominiums and co-ops.

Sales rose 1.9% from October to a seasonally adjusted annual rate of 6.46 million in November. Home sales fell 2% from a year ago, however, when the real estate market saw a seasonally atypical increase in home purchases due to the pandemic.

“Determined buyers were able to land homes before mortgage rates rose further in the coming months,” said Lawrence Yun, chief economist at NAR.

Price Rises: House prices continued to rise as buyers competed for a near-record housing inventory. The average house price was $ 353,900, up 13.9% from last year. That’s 117 consecutive months of annual increases, more than nine years, which is the longest streak in history.

Part of the reason the average price continues to rise is that more expensive homes are being sold. Home sales of $ 750,000 to $ 1 million were up 37% from last year, and homes of more than $ 1 million were up 50%.

Employers are starting to demand booster injections

Millions of American workers are already forced to show a proof of a vaccine against Covid to their employer. Many may soon be forced to prove that they also received a booster shot, reports CNN Business colleague Chris Isidore.

With the rise of Omicron, public health officials point out that a booster vaccine is more important than ever. Many who received their initial dose or doses of vaccine more than six months ago may have limited protection against the variant. A booster dose is believed to provide important protection against it.

The figures: A survey of 200 top employers by Gartner last week found that 8% of employers are changing their definition of being “fully vaccinated” and requiring workers to get booster injections.

The percentage requiring reinforcements is expected to increase as Omicron cases spread and companies are trying to figure out how to reopen offices that were closed or staffed for a limited time during most of the pandemic, said Brian Kropp. head of research at Gartner’s human resources practice.

“This is the first time we’ve asked about reinforcement warrants. I’m pretty sure if we asked a month ago it would have been 0%,” he said. “When we get to mid-January, it will be much higher, probably between 15 and 20% is my best guess right now.”

Until next time

Initial U.S. unemployment claims will be posted at 8:30 a.m. ET.

Also today:

  • US personal expenses and income for November
  • PCE price index

Tomorrow: US stock markets close.