ajtj99's Market Pulse

[ajtj99]

If you want to know who's responsible for the rise in oil, blame the businesses and business people in China. They're buying 10-million new cars this year, and all will need gas.

There's barely a used car market there, so that means almost nothing will come off the road.

That amounts to about an additional 300,000 Barrels a day of oil demand just coming from cars in China. Add in the trucks and other transport and you've probably got 400,000 barrels of additional supply.

What we do here to conserve makes little difference when this is happening.

That blame the speculators stuff is missing the basic econ 101 point - supply is well below demand, and demand is growing while supply is shrinking.