Cathie Wood’s 2020 prediction that oil prices would slump to $12 hasn’t aged well as the Ukraine invasion sends the price of oil spiking. On Monday, she said she got the supply shock wrong but she still expects oil prices to collapse -- eventually.
“I got the supply shock wrong. That said, the accelerated shift toward electric transportation will destroy oil consumption at the margin,” she wrote on Monday. “Long term, though longer term than I expected, oil prices will collapse under the weight of lower demand.”
The founder and CEO of ARK Investment Management also said in a Twitter post that the “supply shock caused by the energy insecurity policies of the current U.S. administration, ESG mandates globally, and now Russia’s invasion of Ukraine has raised prices to a point that will accelerate demand destruction.”
Wood’s comments come after oil shot up well above $100 a barrel after reports that the U.S. was discussing a ban on Russian crude imports sent shock waves through an already-reeling market.
This article was provided by Bloomberg News.