Impact of Electric Cars on Long Term Oil Price Forecast
It was unbelievable that electric cars would replace gas powered cars decades ago. There are so many transformation over two decades on technologies where electric power is highly used. Because technology is adopted in most countries, there is decline in gasoline demand in those countries. For this reason, the electric cars are in use and this is having an impact in bucking the oil price forecast.
The long term oil price forecast suggests that there will be doubling of price in about three years as the countries recover from the pandemic. However, since by 2025 the demand for electric cars will be high, the prices will be uncertain. The other thing that is used in forecast here is the ban of gas powered cars in the UK as that will affect the prices of oil.
It is also crucial to know there are short term factors that have influence on changes on oil prices such as political events, global oil supply and more as outline in this website.
It is now evident that by the year 2025 electric cars will reach the recommended cost parity with gasoline cars. This is creating awe to legacy car manufacturers since there is stiff competition that is in the market today. The cost the gas powered cars will use in a mile will be covered by the electric cars in less than a half the cost incurred and you can view here! There are countries where the price of gasoline is quite high and with that concern the demand for electric cars is at the peak.
Sustainability is well considered here as more cars such as BMW i3 are buying up the idea. The demand for electric cars has increased since these cars are good when it comes to sustainability and also cost effective. On the other hand, oil companies are now buying electric charging companies so that they can fit the trend and transformation that is there on cars read more now.
It is estimated that by the year 2040 world electricity will be derived from renewables. People have turned to use of solar power because is less expensive and with that concern fossil fuel electricity is less used. It is important at all times to investigate and now the cost of product of the renewables so that proper decisions can be determined.
The electric cars are encroaching the market and this is a threat to gasoline cars as this will have an impact on the long term oil price forecast that the prices will decline as the global embrace electric cars.
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