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    Cathie Wood compares current crude oil market to whale oil and predicts that it will follow the same fate

    Cathie Wood likens the oil market to the extinction of whale oil in the early 1900s and wants oil prices to fall.

    “This year’s rise in oil prices is a function of supply rather than demand. At the turn of the 20th century, whale oil faced the same fate and whale oil prices fluctuated dramatically. @ARKInvestThe investigation is correct. Oil prices will follow the same fate as whale oil prices. “

    This year’s US oil prices rose sharply as demand recovered after falling. Coronavirus pandemic.. US West Texas Intermediate (WTI) Crude oil futures were expected to rise for the sixth straight week at around $ 74.38 a barrel on Friday. Commodities have risen by more than 53% in 2021. At some point when the pandemic began, demand collapsed and futures traded at negative prices.

    Many analysts and economists see rising oil prices as a function of rising demand, but Wood assumes it is due to supply turmoil. Innovation investors expect oil prices to fall, as they did in the early 1900s, when whale oil prices lost significant value as they replaced other fuel sources.

    Many of Wood’s most belief companies surround technology that avoids the use of oil. Wood is bullish on electric vehicle and battery companies. Overall, widely-supported investors believe that long-term deflation will recur as technology continues to disrupt many industries across the board.

    “However, under ESG obligations, pension funds are demanding oil companies to cut capital spending, while US banks are responding to last year’s fall in oil prices by hydraulic fracturing companies. The OPEC is on the supply line, refusing to lend, “Wood tweeted.

    Meanwhile, OPEC said earlier this week that it believes oil demand will continue to grow until 2035, even with cleaner energy sources, as developing countries increase their fuel use. After that, OPEC expects demand to level off.

    — With a report from Pippa Stevens on CNBC.

    Cathie Wood compares current crude oil market to whale oil and predicts that it will follow the same fate

    Source link Cathie Wood compares current crude oil market to whale oil and predicts that it will follow the same fate

    The post Cathie Wood compares current crude oil market to whale oil and predicts that it will follow the same fate appeared first on Eminetra.

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