Oil demand will remain strong through at least 2020, pushing spot costs for crude above futures pricing.
According to Bloomberg, that’s the message from Francisco Blanch, Bank of America’s head of commodities and derivative research.
Electric vehicles won’t start biting into oil demand until at least 2020, he said in a Bloomberg Television interview, and he expects China to push electric vehicles in its quest for cleaner fuels – but added the technology still needs three to four years to make prices comparable with internal combustion engine vehicles.
China is “going to have a massive geopolitical exposure to global energy,” Blanch told Bloomberg. “They need to wean themselves off the foreign fuel dependency problem they have.”