Historic production cuts by OPEC+ to avoid oversupply issues and the gradual resumption of economic and industrial activities helped the energy sector to a strong rebound in 2021. And tight inventories and soaring demand recently caused oil and natural gas prices to surge to multi-year highs. However, because no new restrictions are being imposed despite surging COVID-19 omicron-variant infections, OPEC+ has decided to hike its oil production by 400,000 barrels per day beginning next month.
However, demand is expected to increase faster than supply in the recovering economy. So, analysts forecast that oil and natural gas prices will rise again this year. If so, this should keep driving the performance of energy companies.
