Could Oil Prices fall?
Tuesday 16 November 2010 | By Colin WingfieldBack to Newsroom
A recent study by the International Energy Agency (IEA) has indicated that as vehicles become more energy efficient, and more 'alternative' energy motors take to the roads, this could have the effect of reducing demand for oil. It has been calculated that a reduction in demand of 33% could see the cost of a barrel of oil fall from $120 to $70.
The findings are largely consistent with a 2008 paper submitted by Transport and Energy which stated that this could roughly double the current level of energy savings on new vehicles.