Cathie Wood Predicts Oil Price Drop to $30-35 Per Barrel, Says Demand Has Peaked

Cathie Wood, founder and investor at investment firm ARK Invest, predicted Tuesday that a paradigm shift in the transportation sector will lead to a sharp decline in crude oil prices.

Oil Prices to Fall, Says Cathie Wood

In a post on social media platform X, ARK Invest shared a video of Wood commenting on oil prices. "57% of oil consumption goes to transportation," Wood said, adding that the firm believes mobility is "shifting from gasoline-powered cars and engines in other areas, as well as diesel-powered trucks, to electric."

The investor added that oil demand has been "in the process of peaking" since this transition began. "We do think oil prices could fall to a range of $30 to $35," she said. ARK Invest stated in its post that China and Europe are already in transition, with the U.S. set to follow.

57% of oil consumption goes to transportation. @CathieDWood believes this share is all shifting to electric, starting in China and Europe, with the U.S. following. She laid out the case in her October ITK that oil demand has been in the process of peaking.

— ARK Invest October 27, 2026

Trump Touts Venezuelan Oil

At a rally in Texas, Trump announced that the U.S. has received 1 million barrels of oil from Venezuela, adding that U.S. oil supply exceeds the combined total of several countries. He also stated that Venezuela could potentially become the 51st state of the U.S. in the future.

The Trump administration also announced plans to repeal Biden-era methane regulations, stating this would save consumers and energy producers $45 billion annually.

Cathie Wood Believes Tesla Will Dominate Transportation

Meanwhile, ARK has previously cited comments from Tesla's Chief Financial Officer, Vaibhav Taneja, regarding the automaker's ambition to expand its footprint across multiple transportation sectors.

During Tesla's earnings call last week, Taneja said the company would "continue to expand the [Robotaxi] fleet with additional vehicles over time to meet ground transportation needs of the global population," adding that Tesla aims to "dominate every part of ground transportation."

Taneja then stated that Tesla would initially focus on moving people from point A to point B, but outlined that the automaker wants to "essentially control any type of transport on Earth," he added.

The company subsequently stated that Tesla could move its Robotaxi underground through a partnership with The Boring Company, while also seeing potential for intercontinental travel via rockets from Space Exploration Technologies Corp.