The Future of Crude Oil Market
Daily Crude Oil trade reached 2.1 Trillion USD and it is the most traded commodity right now in future markets and also physical markets. So price changes in oil makes profit or losses for traders at the same time for countries. But as a result of global warming we see new promises to get away from fossil fuels. So this huge market will evolve into some other markets. To make transportation cleaner, car makers switch from fossil fuel cars to Battery Electric Cars. Tesla is seen as the most successful company in the world of Electric Cars. But we have another brand to be discussed in the coming years : BYD. This company stopped making fossil fuel consuming cars last year and right now produces only Hybrid and Battery electric vehicles. This Chinese company sold more cars than Tesla in the first 3 Quarters of this year. Other big car makers are also working on adapting themselves to these new market conditions.
We have some surprise newcomers in Car Markets; Xiaomi. The company has announced that they are entering electric car production business in 2021 March with 1.3 Billion USD investment. They also plan to invest around 10 Billion USD till 2030. Xiaomi has submitted the official production design papers to Chinese Authorities this week and they will start mass production in December. The first deliveries are planned to be in 2024 February. If they get successful it will show other tech companies a new market for competition. This transition will not happen in one night but we are in the peak phase of Crude Oil Consumption.
This transition is similar to the transition of Smartphones. The biggest phone producer Nokia failed to adapt itself and now nobody talks about them. So we will have winners and losers of this change and it will even affect the importance of geopolitics. The countries that are dependent on Crude Oil Exports need to find a solution to keep their economies stable in the coming decades.
In conclusion the markets are changing and these changes are creating opportunities. You can benefit from these changes with Expert MarkUP Trade Analysis.