Electric Car revolution could slump oil prices to 10 dollars, warns a British analyst

Landon: Chris Watling, a British analyst, warned about the drop oil prices to 10 dollars per barrel in next few years. He said that, “Development in electric cars will cause significant events around the world. As 70 percent of all the crude oil produced is used for transportation. We cannot forget that approximately 120 years ago the world was not dependent on oil. Oil is not a commodity to drive the global economy all the time. Development if alternate energy has gained tremendous momentum changing and things are changing quickly.”

Watling, during interview to an American news channel, spoke about the important events in the oil market in the coming years. He said that the upcoming IPO (Initial Public Offering) of Saudi Arabia’s leading oil company, Aramco, will prove to be a decisive factor. He added that the Saudi company should act fast, before the oil prices drop to 10 dollars per barrel.

Watling claimed that the oil prices would slump in next 6 to 8 years mainly due to electric vehicles. Numerous reports published worldwide in the past few months, have forecasted a huge rise in the number of electric vehicles.

Organization of the Petroleum Exporting Countries (OPEC), published report claiming that by the year 2040, the total number of electric vehicles on the planet will exceed 26 crores. Leading oil companies Exxon and BP have predicted that by 2035 to 2040 the number of electric cars in the world would reach 10 crores. While ‘Bloomberg New Energy Finance’ report has claimed that the number would be 53 crores by the year 2040.

In the past few months, leading economies of the world such as China and France have announced policies to increase the number of electric vehicles in their countries by the year 2030.