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Will Skyrocketing Oil Prices Help Imminent Passat TDi Intro?
Could this be a advantageous for VW as the summer driving season approaches and gasoline is heading straight for $2.50/gallon?
Will this combination of events work to VWoA’s advantage or will it be another missed opportunity - - for VWoA and Americans?
Near -term concern:
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Yesterday's price jump of nearly 2 percent came after the Energy Information Administration reported a further decline of 800,000 barrels in U.S. gasoline inventories. The country is behind schedule in its effort to build gasoline stocks before the summer driving season, when demand peaks.
Oil prices also rose in the last week amid heightened concerns about terrorism in Spain, Iraq, Pakistan, Saudi Arabia and other hot spots around the world. Sabotage to Iraq's northern oil pipelines and other problems have prevented that country from producing the more than 2 million barrels a day many analysts had expected by now.
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Long-range concern:
[ QUOTE ]
The steady climb of oil prices in recent weeks reflects a convergence of growing demand from the world's three largest oil consumers-- the United States, China and Japan -- even as supplies are set to shrink April 1 because of a cut in production by the Organization of the Petroleum Exporting Countries.
World demand grew by 1.4 million barrels a day last year and is forecast to grow by an additional 1.5 million barrels a day this year, primarily because of record consumption of gasoline in the United States and China, where auto sales and industrial production are expanding rapidly.
Joseph P. Quinlan, chief market strategist with Banc of America Capital Management, said he expects dramatic growth of consumption in China -- potentially the world's biggest car market -- to drive oil prices for years to come.
Auto sales in China soared by roughly 70 percent last year, he said, contributing to a 46 percent boom in oil imports. The government in Beijing expects double-digit growth in auto sales to continue as incomes grow, China's middle class expands, and cars made there become cheaper and more numerous.
Despite the strong pickup in demand, OPEC has not backed off its Feb. 10 decision to cut production by 4 percent, or 2.5 million barrels a day. The move comes partly because OPEC fears demand will wane as it usually does during the spring and partly because of the dollar's 15 percent fall against other currencies in the last two years, which has cut the value of oil sales denominated in dollars.
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link to story
Could this be a advantageous for VW as the summer driving season approaches and gasoline is heading straight for $2.50/gallon?
Will this combination of events work to VWoA’s advantage or will it be another missed opportunity - - for VWoA and Americans?
Near -term concern:
[ QUOTE ]
Yesterday's price jump of nearly 2 percent came after the Energy Information Administration reported a further decline of 800,000 barrels in U.S. gasoline inventories. The country is behind schedule in its effort to build gasoline stocks before the summer driving season, when demand peaks.
Oil prices also rose in the last week amid heightened concerns about terrorism in Spain, Iraq, Pakistan, Saudi Arabia and other hot spots around the world. Sabotage to Iraq's northern oil pipelines and other problems have prevented that country from producing the more than 2 million barrels a day many analysts had expected by now.
[/ QUOTE ]
Long-range concern:
[ QUOTE ]
The steady climb of oil prices in recent weeks reflects a convergence of growing demand from the world's three largest oil consumers-- the United States, China and Japan -- even as supplies are set to shrink April 1 because of a cut in production by the Organization of the Petroleum Exporting Countries.
World demand grew by 1.4 million barrels a day last year and is forecast to grow by an additional 1.5 million barrels a day this year, primarily because of record consumption of gasoline in the United States and China, where auto sales and industrial production are expanding rapidly.
Joseph P. Quinlan, chief market strategist with Banc of America Capital Management, said he expects dramatic growth of consumption in China -- potentially the world's biggest car market -- to drive oil prices for years to come.
Auto sales in China soared by roughly 70 percent last year, he said, contributing to a 46 percent boom in oil imports. The government in Beijing expects double-digit growth in auto sales to continue as incomes grow, China's middle class expands, and cars made there become cheaper and more numerous.
Despite the strong pickup in demand, OPEC has not backed off its Feb. 10 decision to cut production by 4 percent, or 2.5 million barrels a day. The move comes partly because OPEC fears demand will wane as it usually does during the spring and partly because of the dollar's 15 percent fall against other currencies in the last two years, which has cut the value of oil sales denominated in dollars.
[/ QUOTE ]
link to story