The emergence of the electric car will influence the oil price, this isn’t anything eccentric. But to answer what type of influence it will be is difficult.
You think that demand for oil will be dropped off since cars on the road will run on electricity. You are correct. But only for the long run oil economy.
The scenario in the short-term is entirely reverse. Celebrity commodities investor and co-founder of hedge fund firm Ospraie Management, Dwight Anderson opines that oil price will step up due to electric vehicles.
In a TV interview, Anderson said,
“So that EV side is going to be something that is really going to affect demand growth in crude next decade, and I actually think it could have the odd effect of keeping crude oil prices higher for longer at the tail end of this decade into early next.”
According to Anderson, since in long-run oil price will go down because of electric vehicles oil companies will increase the price in short to compensate the future loss. Those companies spend billions of dollars on their projects.
Companies will make money in the short run curtailing the oil supplies and raising the price when electric cars are yet to take the market.
If OPEC also thinks what Dwight Anderson thinks then there will spike in oil price in no time.