Impact of Electric Cars on Long Term Oil Price Forecast
No one could ever thought that electric cars will one day replace the gasoline cars. So many changes when it comes to technologies have been experienced and with that regard, electric power has been preferred to fossil fuels read more here. There is decline in the gasoline demand in countries that are relying on tech. For this reason, the electric cars are in use and this is having an impact in bucking the oil price forecast.
As most countries will be recovering from the global pandemic, the long term oil price forecast suggests that, discover more, there will be doubling of the prices. By the year 2025 there will be high demand for electric cars as that is the preferences of most countries and that will have an impact on the oil prices making the cost to remain 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.
Some short term factors impacting the oil prices comprise of oil supply, political event and economic development now!
It is now evident that by the year 2025 electric cars will reach the recommended cost parity with gasoline cars. The competition on pricing is high and this is causing tension to most car manufacturing companies. 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! Thus, countries like UK where gasoline price is high, the demand for electric cars has increased.
Sustainability is well considered here as more cars such as BMW i3 are buying up the idea. People are buying electric cars since they are suitable to the environment and also they help one to save lots of money. This global car transformation to electric cars has led to oil companies like shell, total and others to purchase electric charging companies.
The global use of electricity by 2040 is believed that will come from renewables, you can check this site. There are countries that use solar power which is cheaper as compared to fossil fuel power. When you look at the cost of production you can get to know the trend on the use of renewable energy hence investing right.
The use of electric cars will eventually take over the market, and this will lead to decline on long term oil price in the future as more people will prefer using electric cars than gas powered cars.