Global warming may reduce demand for heating fuels
Climate change, the subject of a key independent report published this week, could push oil prices lower in the long term as warmer air reduces demand for heating fuel.
By Agencies |
LONDON: Climate change, the subject of a key independent report published this week, could push oil prices lower in the long term as warmer air reduces demand for heating fuel, analysts said. They added that attempts to combat global warming, particularly by taxing certain forms of transport at a higher rate, could also dampen demand for gasoline or petrol, jet fuel — and crude oil.
The Stern Report, released this week with the backing of British PM Tony Blair, found that unchecked global warming could destroy 5-20% of global gross domestic product every year unless economic measures were quickly taken.
“Over a longer period of time, global warming could potentially reduce consumption and have an (oil) market impact,” said Global Insight analyst Simon Wardell. He added, “In theory, you could have warmer weather, which might reduce demand for the winter months.
“Probably more significant is the fact that there may be some moves to try and reduce carbon emissions, by taxing fuels and jet travels for example, which may lead to reduce actual consumption or at least slow demand growth. However, Wardell said the oil market impact would be “a long way off”.
The Stern Report, released this week with the backing of British PM Tony Blair, found that unchecked global warming could destroy 5-20% of global gross domestic product every year unless economic measures were quickly taken.
“Over a longer period of time, global warming could potentially reduce consumption and have an (oil) market impact,” said Global Insight analyst Simon Wardell. He added, “In theory, you could have warmer weather, which might reduce demand for the winter months.
“Probably more significant is the fact that there may be some moves to try and reduce carbon emissions, by taxing fuels and jet travels for example, which may lead to reduce actual consumption or at least slow demand growth. However, Wardell said the oil market impact would be “a long way off”.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
