Sunday, April 11, 2010

The oil price is about China....not the US

I always chuckle when I hear the US oil analysts on Bloomberg and CNBC quote the weekly US oil data as the primary price driver. These dinosaurs have never ventured outside of the US and still think the US drives the price. It's all about China.

Read the article here.

SHANGHAI (AP) -- China's passenger car sales jumped 63 percent in March from a year earlier as manufacturers scrambled to meet strong demand driven by tax cuts and government subsidies, a state-affiliated industry group reported Friday.

Passenger car sales rose to 1.26 million vehicles in March, according to the China Association of Automobile Manufacturers.

The figures show sustained growth for automakers in a market that bounced back from a slowdown in late 2008-2009 as the government pumped hundreds of billions of dollars into economic stimulus.

Weak sales in the United States and a surge in car purchases by newly affluent Chinese buyers helped to make this the world's largest auto market last year, when total vehicle sales jumped 45 percent over 2008 to 13.6 million units.

The U.S. market is recovering but cannot match growth in China, where many are still buying their first cars. Demand for bigger cars is growing as families that bought small cars the first time trade up to better, larger vehicles.

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