The International Energy Agency (IEA) noted earlier this week that while the increase in COVID cases is expected to temporarily hinder global oil demand recovery, the impact of the Omicron variety would likely be more subdued than prior waves and will not upend the present demand recovery. Because of massive vaccination programmes, new containment measures put in place to stop the virus’s transmission are likely to have a more muted impact on the economy than earlier Covid waves.
As a result, we anticipate continued healthy increase in demand for road transport fuels and petrochemical feedstocks. The Omicron scare has had the most impact on jet fuel demand, as international travel has been curtailed once again, with many nations imposing stricter entrance procedures, including for fully vaccinated tourists. The Act is projected to take effect in several buildings under seven floors by late 2023, and in higher buildings by 2027. However, some companies are exempt, such as restaurants and hospitals.
Existing structures are exempt from the restriction for the time being, but new construction plans after 2027 will be required to use electricity rather than gas for heating and cooking. As the country’s sixth-largest gas customer, this will help the city’s decarbonization efforts. This is an important aspect of New York’s clean Energy goal, as the city aims to run on 70% renewable electricity by 2030 and 100% carbon-free electricity by 2040. Similar prohibitions have previously been announced in other parts of the United States, such as Seattle’s ban on gas furnaces and water heaters in new construction.