Oil prices could hit $100 by the end of the year, Eric Nuttall, senior portfolio manager at Ninepoint Partners LP, predicted.

"When we look at global oil demand, we're back to pre-COVID levels. So there are strong reasons to believe the market will continue to grow throughout this year as Omicron passes," Nuttall said. "I believe we're in a structural bull market – a multi-year bull market for oil that will end in all-time high oil prices," he added.

More and more traders and analysts are bullish on oil and see crude oil prices rise above $100, Barron's reported.

An outlook by Goldman Sachs released in December 2021 forecasted oil to surpass $100 in 2022 and potentially reach new highs in 2023.

Oil prices could increase over the next few months thanks to increased demand amid declining impact of Omicron on the economy and constrained production from OPEC+ countries.

Major economies such as the US, Germany, the UK, and France have so far avoided full-scale lockdowns, as the number of hospitalizations did not rise alongside a rise in infections.

Amid falling passenger numbers, Heathrow Airport called for COVID-19 testing to be dropped for fully vaccinated people. Demand for air travel could grow this year, giving support to fuel prices.

Morgan Stanley analysts were also bullish on oil.

Rising interest rates and a rotation towards value would benefit the market. These factors are tailwinds for energy majors such as Shell, BP, Eni, TotalEnergy and Equinor, the outlook said.

Latest events in the US give support to this outlook. On Tuesday, Jerome Powell, chairman of the Federal Reserve, stated that the US economy should withstand the current COVID-19 surge with only "short-lived" impacts.

The US was preparing for the start of monetary tightening, he said. Weaker US currency is making dollar-denominated oil contracts cheaper for holders of other currencies.