OPEC Faces 'Mortal Threat' From Electric Cars

OPEC released on Wednesday its long-term forecast in which it sees the price of oil rebounding to $95 per barrel by 2040.

The Telegraph's Ambrose Evans-Pritchard described OPEC's report as a "remarkable document" as the organization "refuses to see the writing on the wall."

The "writing on the wall" that Evans-Pritchard refers to is the surge of demand for electric vehicles that would eliminate some of the demand for oil.

Related Link: OPEC: $100 Oil Unlikely To Be Seen Again Until After 2040

OPEC's report noted that while battery costs in electric vehicles could fall by as much as 50 percent over the next 25 years, "consumer resistance" to changes in their driving habits will limit the growth of electric vehicles sales.

"This is a brave call given that Apple Inc. AAPL and Alphabet Inc GOOG have thrown their vast resources into the race for plug-in vehicles, and Tesla Motors Inc TSLA's Model 3s will be on the market by 2017 for around $35,000," Evans-Pritchard wrote.

The report also cited Toyota Motor Corp (ADR) TM's decision to "bet its future" on hydrogen fuel cars, beginning with the Mirai.

"One should have thought that a decision by the world's biggest car company to end all production of petrol and diesel cars by 2050 might be a wake-up call," the author added.