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Dwight Anderson believe that electric cars will be positive for the oil prices
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Loading...It should come as no surprise that the rise of electric vehicles has broad implications for the price of oil.
Now, you'd think that as more of the cars on the road are powered by batteries rather than petrol, demand for oil will slide. And in the long-term, that maybe true.
In the short term, however, electric vehicles could actually lead to a spike in the oil price, according to Dwight Anderson, the legendary commodities investor and cofounder of hedge fund Ospraie Management.
His argument is that huge oil projects, the kind that produce 100,000 to 500,000 barrels per day, cost billions of dollars and take years to develop. If they can see that long-term demand for oil is likely to fall due to the rise of electric vehicles, they won't commission these projects.
That will reduce supply, and potentially create a period where oil supply has dropped, but electric vehicles haven't yet taken over.
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