Oil will crash to $ 10 a barrel with electric vehicle revolution, stressed

Chris Watling, chief executive of Longview Economics, acknowledged that a key catalyst for the oil market would likely be the Saudi Aramco's initial public offering (IPO) in the second half of next year.

And when he was asked about Saudi Arabia's state oil group being launched on the international stock market, he replied, "Well, I think they have to go oil up to $ 10 (per barrel).

Over the term "what happens with electric cars is real, really important" given that about 70 percent of oil is used for transport, he added.

Oil prices are being plagued with a $ 10 per barrel over the next six to eight years, according to the chief executive of Longview Economics, Chris Watling, CNBC on Friday.

When looking forward to 2018, Watling acknowledged that a key catalyst for the oil market would likely be the Saudi Aramco's initial public offering (IPO) in the second half of next year. And when he was asked about Saudi Arabia's state oil group being launched on the international stock market, he replied, "Well, I think they have to go oil up to $ 10 (per barrel).

While Watling explains that he did not necessarily expect such an intense decline in oil prices over the coming weeks or months, he argued that over the long term "what happens with electric cars is real, really important" given that about 70 percent of oil is used for transportation.

"We do not forget and I mean 120 years ago that the world has not been on the economy, "he added.

The Longview Economics CEO predicted the price of oil would eventually slump to $ 10 a barrel over the next six to eight years.

OPEC optimistic oil market rebalancing

On Thursday, the International Energy Agency (IEA) said the global outlook for oil markets in 2018 could put a damper on higher prices for hopes. In its close-watched report, the IEA said global stock builds, rising non-OPEC production and static oil demand could weigh on the oil price.

The IEA's latest monthly report has been optimistic forecasts from the major oil producer group OPEC, with the cartel arguing evidence of the global oil market rebalancing following several years of low prices.

The price of oil is collapsed from almost $ 120 a barrel in June 2014 due to weak demand, a strong dollar and booming U.S. shale production Opec's reluctance to cut output was also considered as a key reason behind the fall. But, the oil cartel recently moved to curb production - along with other oil producing nations - in late 2016.

Brent crude traded at around $ 57.39 a barrel Friday morning, up 2 percent, while U.S. Crude was around $ 51.50 a barrel, up to 1.8 percent.