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Global Oil Prices May Double by '23 Even as EV Adoption Rises

JPMorgan suggests oil reaches $150 a barrel by 2023, even as EV adoption grows at a more than 30% compounded annual rate.
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Oil prices could more than double over the next two years even as EV adoption rises.

Brent crude, the international benchmark, may hit $125 a barrel in 2022 and $150 a barrel in 2023, a report by JPMorgan Chase suggests. Brent futures contracts were trading at about $71.50 per barrel at last check. 

The reason for the potential price jump is that OPEC doesn't have nearly enough reserves to tamp down prices, according to JPMorgan's Christyan Malek.

"They don't have the barrels. It's a mirage," Maylek told CNN this week.

U.S. retail gasoline prices have steadily climbed in 2021, peaking at an average price of nearly $3.50 per gallon at the end of November, according to Ycharts

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At the same time, electric-vehicle adoption is rising. Most of the world's largest and most advanced economies have committed to phasing out internal combustion cars completely in the coming decades. 

Recent research suggests a compound annual growth rate of 33.6% for the electric- vehicle market between 2020 and 2027. Meticulous Research expects the global electric vehicle market to reach $2.495 trillion by 2027. 

The global car market size in 2021 is $3.6 trillion, according to some estimates

On Wednesday, Exxon Mobil  (XOM) - Get Exxon Mobil Corporation Report, the largest U.S. oil company, said it planned to boost spending on low-carbon projects as part of its wider investment strategy through 2027. 

Exxon said it would meet its target to reduce greenhouse gas emissions by between 15% and 20% -- from 2016 levels -- by the end of this year, nearly four years ahead of its prior forecast.

Exxon shares at last check were up 3% at $61.66.