It was unbelievable that electric cars would replace gas powered cars decades ago. It is crucial to note here that over decades, electric power has been in great use due to the changes that are there in technologies. Because technology is adopted in most countries, there is decline in gasoline demand in those countries. Therefore, the use of electric cars has dominated in the market and that is a clear indication that the oil price forecast change as demand shifts.
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.
There are also short term factors that makes the prices to rapid increase such as the economic development, oil supply and political events.
The cost parity will be attained by the 2025 between electric cars and gasoline cars here! The uncertainty of the oil price in the future makes it hard for car manufacturers to make informed decisions. Amazingly, the electric cars are capable to save a lot on cost since they spend less than half cost for the distance covered by the gasoline cars. There are countries where the price of gasoline is quite high and with that concern the demand for electric cars is at the peak.
The cars that are manufactured nowadays are focusing on sustainability where the materials used are biodegradable. People are buying electric cars since they are suitable to the environment and also they help one to save lots of money. 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.
Renewables are estimated to offer about 85% of the world electricity comes year 2040. It is noted that there is great use of solar power which is renewable energy as per the fossil fuel powered electricity, read more here. There is need to do research on the cost of production that seems to be reduced as that helps a lot in decision making and price estimations.
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.