Indian Oil Top Executive Not Ruling Out Decrease in Oil Demand Due to Spread of Omicron

HOUSTON US (Sputnik) - The spread of the new COVID-19 Omicron variant may provoke a decrease in oil demand in the short-run, if it turns out to be more severe than previous variants and triggers the necessity to introduce lockdowns, Dr. SSV Ramakumar, the director of research and development on the board of Indian Oil Corporation, said.

"I think yes, if Omicron turns out to be severe, or more severe variant than its previous Delta variant or others, then we might see once again maybe massive lockdowns and also, definitely there will be more distraction, and if there is any more distraction, then prices may fall," Ramakumar said on the sidelines of 23rd World Petroleum Congress in Houston.

Brent crude oil price returned to $75 per barrel after losing about 4% of its value last week due to uncertainty in global demand for raw materials amid the spread of the Omicron variant.

The 23rd World Petroleum Congress started on Sunday in Houston amid ongoing fluctuations in the global energy sector. This is one of the most representative oil and gas forums, engaging more than 5,000 participants. Delegates from 70 countries, including energy ministers and representatives of major core enterprises, will be discussing the development of the energy industry amid existing and new challenges until Thursday.