Summary Transportation fuels make up the large majority of crude oil consumption. Increasing fuel efficiency and the improvements in electric vehicles will inevitably lead to demand destruction for the primary crude market. Peak demand or stagnating growth will likely occur by 2030 and, as a result, oil prices will fall to the marginal cost of production. Saudi Arabian strategy could already reflect this idea – leading to a desire to maintain low oil prices to reduce the risk of stranded assets. Demand destruction in the oil (NYSEARCA: USO ) markets will mean a slow and painful death for oil companies. Unquestionably, we are going to see rising demand for the next decade. However, there is an increasing likelihood that demand destruction will start to occur before 2030. A peak demand scenario will coincide with a significant and sustained drop in oil prices, and will usher in the next critical […]