Has Oil Demand Peaked? – Gasoline is Out.
This article is originally referred from iForex Blog.
For over a century, gasoline has been the fueling power behind numerous industries and social changes. Now, there are some people suggesting that this age is coming to an end.
The International Energy Agency has released a forecast that sent major shockwaves, projecting that global gasoline consumption has reached a peak and hinting that the future lies with alternative vehicles and electric cars designed by companies such as Tesla Motors.
The report suggested that demand growth will come to a halt over the next 25 years.
You might be thinking: “Well, that’s just gasoline. It’s not as if factories will be using solar energy anytime soon.” This is true, but considering gasoline is responsible for a quarter of oil consumed daily around the globe, this could have a substantial impact on the massive oil-refining industry.
IEA Executive Director Fatih Birol said the number of electric cars is expected to rise from around 1 million last year to over 150 million by 2040.
If this is even almost correct, many energy companies will be affected. However, the agency still expects the overall demand for oil to grow for a few decades due to the consumption of jet fuel, fuel oil and diesel.
Royal Dutch Shell, one of the world’s largest energy companies, are even more pessimistic. This month, one of its executives stated the demand for oil might peak in five years.
At iFOREX, you can invest in many automobile companies that are betting on electric vehicles including Tesla (of course), BMW and Nissan, in the form of CFDs. You can also invest in share CFDs of energy companies such as Shell.
Changes in the energy industry can potentially impact companies, commodities and even currencies. Follow market events such as the OPEC meeting on November 11th that may or may not result in an agreement to cap output, and take advantage of opportunities as they appear.
Original Source: iForex Blog