Cheaper Oil and Costlier Batteries: 2022’s Energy Surprise
Few would have predicted that the year would end with oil prices down and battery prices higher — but there are reasons to think it won’t last.
Battery packs ready for a new EV
Photographer: Jeoffrey Guillemard/BloombergWelcome to today’s Elements, our energy and commodities newsletter. In today’s take, Liam Denning looks at the relative prices of oil and batteries. Crude has slid almost 10% this week despite the introduction of sanctions on Russia that many expected to boost prices. If you haven’t yet signed up to get Elements directly into your inbox, you can do that here.
It isn’t too early to say it’s been a wild year. Few, outside of US intelligence, predicted Russia invading Ukraine (again). Perhaps fewer still had Morocco knocking Spain out of the World Cup. But I doubt anyone at all predicted 2022 ending with oil prices down and the cost of batteries going up.