Sunday, March 27, 2005

oil price is still increasing!!!

recently, the price of oil in China is still increasing. this trend leads a lot of change in china's car market. less people buy SUV while more and more people focus on Japanese cars. people don't want to spend that much money in buying oil.

according to [the article linked above], "China's continuous increase in the price of oil is the product of the large rises in the international prices of crude oil. In 1998, after proposals were made to reform the pricing mechanisms of oil, the price of oil on the international market suddenly changed. Since April 1999, the average price of oil on the international market has shot up 130%, gasoline and diesel oil prices have risen 62% and 84% respectively, due to restrictions on oil production by OPEC and an increase in demand for oil by world economies. Currently, the prices of oil on the international markets have not come down and will remain above US$25 per barrel in the next couple of months. "

what elso will influence the whole china car market in your opinion?

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