Is Energy Market In A Commodity Bubble, Or Are Fundamentals Supporting Prices?

By Author: John Smith
Total Articles: 3
Comment this article

Electric vehicles are gaining popularity worldwide as they have evolved technologically to offer better range at competitive prices without compromising on looks or features. Interestingly, the first electric car dates back to the 1800s and first operational electric car made its debut in the United States in 1890. Despite an early start, EVs could not capture the global transport segment in a meaningful way.
The point here is that even after 200 years, we could not get rid of our dependance on fossils fuels. Deep down, we all love the roaring sound of the gas guzzling engines producing enough horsepower to accelerate the car from 0 to 100 km/h in few seconds.

However, over the past decade or so, the acceptance of EVs is gaining momentum. Europeans are taking lead in promoting battery-operated vehicles. China is also making serious efforts to develop faster and efficient EVs backed by reliable battery technology.

According to the data published in Resources and Energy Quarterly June edition, the sales of EVs jumped 126% on Y-o-Y basis during the March quarter. Nearly 3 million units were sold in 2020 and ...
... 4.4 million are forecasted for the year 2021. By the end of 2030, the demand for EVs is anticipated to be around 26 million units.

So, the big question is- Does increase in the sales of EVs marks the end of crude oil era? https://kalkinemedia.com/news/commodities/is-energy-market-in-a-commodity-bubble-or-are-fundamentals-supporting-prices
The answer is No! The demand for crude oil is not going to be depleted soon. Liquid hydrocarbons are major raw material for numerous industries with the transportation sector being the largest consumer of gasoline and diesel. Even though EVs are gaining traction, it should be noted that most of the countries are still far from developing infrastructure to support the plug-in system.

Financial Investor. Follow all stock related latest https://kalkinemedia.com/au/