Global Oil Prices Could Double By ’23 As Electric Vehicle Adoption Rises
Oil prices could more than double over the next two years, even as the adoption of electric vehicles increases.
Brent crude, the international benchmark, could reach $ 125 per barrel in 2022 and $ 150 per barrel in 2023, suggests a report from JPMorgan Chase. Brent futures were trading around $ 71.50 a barrel at last check.
The reason for the potential price hike is that OPEC does not have enough reserves to drive prices down, according to JPMorgan’s Christyan Malek.
“They don’t have the barrels. It’s a mirage,” Maylek told CNN this week.
Retail gasoline prices in the United States have risen steadily in 2021, peaking at an average price of nearly $ 3.50 per gallon in late November, according to Ycharts.
At the same time, the adoption of electric vehicles is increasing. Most of the world’s largest and most advanced economies have committed phase out internal combustion cars completely in the decades to come.
Recent research suggests a compound annual growth rate of 33.6% for the electric vehicle market between 2020 and 2027. Meticulous Research expects the global electric vehicle market to reach $ 2.495 billion by 2027.
The size of the global auto market in 2021 is $ 3.6 trillion, according to some estimates.
Wednesday, Exxon Mobil (XOM) – Get the Exxon Mobil Corporation report, America’s largest oil company, has said it plans to increase spending on low-carbon projects as part of its broader investment strategy through 2027.
Exxon has said it will meet its target of reducing greenhouse gas emissions by 15-20% – from 2016 levels – by the end of this year, nearly four years ahead of its previous forecast.
Exxon shares at last check rose 3% to $ 61.66.