Equinor CEO sees less energy impact from Omicron strain

The new Omicron strain of Covid-19 may have a less of an impact on energy markets than previous variants, according to Anders Opedal, chief executive of Norway's state-controlled Equinor.

"I think we will see less impact than we have seen before, but it might slow down the growth a little bit," Opedal said today. Vaccine programmes will enable society to remain more open than during earlier stages of the pandemic and this will help support energy demand, he said.

Uncertainty about Omicron's effect on oil demand is weighing heavily on crude and oil product prices. Ice Brent crude futures plunged by over 10pc on 26 November when news of the new variant emerged. Earlier today, the oil market was rattled again after the chief executive of US pharmaceutical company Moderna said existing vaccines might prove less effective against Omicron than previous strains of the virus.

The UK today joined several other European countries in reintroducing some Covid-19 restrictions, with face masks now mandated in most domestic public settings and social gatherings discouraged. The heightened Covid restrictions across Europe have dampened the outlook for regional transport fuel demand in the run-up to the Christmas holiday period.

By Ruxandra Iordache