Cathie Wood Gets Oil Wrong in 2020, Still Maintains “Oil Prices Will Collapse”

In 2020, ARK Invest CEO and CIO Cathie Wood predicted that oil demand had peaked and with the world shifting to electric vehicles, lower oil demand would result in prices falling to $12 per barrel. We all know this didn’t happen, and almost a full two years later, she finally admits she got it wrong.

But as prices go up from $40 per barrel at the time of her prediction to trading $122 a barrel midday Tuesday amid Russia’s ongoing invasion of Ukraine, Wood still claims that “oil prices will collapse under the weight of lower demand” in the long term. Although how long “long term” is wasn’t specified – it’s just longer than she expected.

Wood believes that the skyrocketing prices will lead to an accelerated shift toward electric vehicles and that this will “destroy oil consumption at the margin.” Her company ARK Invest has a stake worth over $1 billion in Tesla (NASDAQ: TSLA), the electric vehicle maker, through the Ark Innovation ETF (NYSE: ARKK).

In an earlier tweet, Tesla’s Elon Musk called to increase oil and gas output, citing that “sustainable energy solutions simply cannot react instantaneously” to make up for Russian oil and gas exports.

US oil companies have made it clear in their February earnings calls with investors that they are unlikely to produce much more, according to the Wall Street Journal. The extra cash from today’s higher profits is being used to pay off debts from the pandemic crash, for share buybacks and dividends, and not to invest in new production.


Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Shorts Against Cathie Wood’s ARKK Surge to Record-High

Following what has been a strong performance for Cathie Wood’s Ark Innovation (NYSE: ARKK) fund...

Saturday, August 7, 2021, 03:04:00 PM

ARK Invest Buys $42 Million in DraftKings Following Hindenburg Report

ARK Invest, best known for never shying away from a price drop even if the...

Wednesday, June 16, 2021, 05:01:00 PM

This Week In China: Easing COVID Policies, Boosting Property Market, Visiting Saudi Oil

As Last Week Tonight host John Oliver would say: “it has been a busy week.”...

Friday, December 9, 2022, 10:11:29 AM

Cathie Wood Liquidates 30 Million Shares In Palantir In Just 3 Trading Days

Ark Invest CEO Cathie Wood seems to be pulling out from software company Palantir Technologies...

Wednesday, February 23, 2022, 11:45:00 AM

Oil Rallies: Could $90 Be The New Norm?

Oil prices experienced a decline on Monday following a recent surge to 10-month highs, fueled...

Monday, September 11, 2023, 08:33:20 AM