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Glencore predicts OPEC insulated from electric vehicle impact

Staff Writer | May 23, 2017
OPEC nations that deliver some of the lowest cost production will be relatively insulated from an early peak in oil demand caused by any faster-than-expected roll-out of electric vehicles, Glencore's chairman said.
Tony Hayward
Technology   The lowest cost production
Members of the Organization of the Petroleum Exporting Countries meet this week in Vienna to decide whether to extend output cuts to reduce oversupply.

Glencore is among the mining companies that anticipate electric vehicles could have a much earlier impact than previously thought, which is beneficial to them as suppliers of copper, cobalt and other minerals, but negative for oil firms.

"Historically the view was oil demand would increase beyond 2040," Glencore Chairman Tony Hayward, who was formerly head of oil major BP, told journalists at Glencore's headquarters in Zug.

"With the progress companies have made with electric vehicles, it's quite likely that (peak in oil demand) will come forward," he said.

"It's probably not very good news for the oil industry and quite good news for the mining industry."