Set price fuel for 3 years

Submitted: Thursday, May 08, 2008 at 18:51
ThreadID: 57396 Views:1792 Replies:3 FollowUps:6
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Just finished watching one of my weekly US business shows on Foxtel and they announced Chrysler are offering fuel set at $3.00 a gallon for 36 months on all new vehicles sold.

They give you a special fuel card that caps the fuel at $3.00 a gallon, any extra is picked up by Chrysler.

Obviously the high fuel prices are affecting car sales in the USA.

Maybe it will catch on here!

Regards Richard
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Reply By: Member - Shane D (QLD) - Thursday, May 08, 2008 at 18:56

Thursday, May 08, 2008 at 18:56
I heard on the Radio today that some futures stockmarket traders are predicting that fuel will go past $200US a barrel within 2 years and are taking bets.
Shane
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Follow Up By: Member - Vince B (NSW) - Thursday, May 08, 2008 at 19:01

Thursday, May 08, 2008 at 19:01
Shane .
The way the price of oil has risen over the past few weeks, it will not take 2 years.
Vince
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Follow Up By: Time - Thursday, May 08, 2008 at 19:32

Thursday, May 08, 2008 at 19:32
...and another mob have predicted $US40 a barrel, I prefer that one!
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Follow Up By: Member - Mfewster(SA) - Thursday, May 08, 2008 at 21:29

Thursday, May 08, 2008 at 21:29
Time, I prefer it too, but what did they base it on? It is simply supply and demand. There is nothing to suggest that demand is going to fall and ther is nothing to suggest that supply can be raised more than a fairly small amount, and even then,that would only be for a short time. All the new fields are relatively small and very expensive ie, deeper and deeper and usually further an further offshore.
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Reply By: Member - Mfewster(SA) - Thursday, May 08, 2008 at 19:24

Thursday, May 08, 2008 at 19:24
I think that means that
1. Chrysler are desperate
2. If I owned any of their shares I would be unloading them as fast as possible.

More realistic is the local head of the MUSSyang importers. His figures claim to show that within the next 3 years Australians will reduce their car use by 20% and his company have decided to switch entirely to diesel models.
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Reply By: Member - shane (SA) - Thursday, May 08, 2008 at 20:19

Thursday, May 08, 2008 at 20:19
there was two claims made, one was oil over two hundred dollars a barrel the other was a drastic full to about sixty dollars a barrel. that's what the bet was for. may be they know some thing. when the Olympics are over china's demand will not be so strong on oil, also a business acquaintance who buys from china and goes there all the time said some Chinese companies are now having things maid for them in India to save on production cost. So the big wheel goes round and round and round.
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Follow Up By: Member - Mfewster(SA) - Thursday, May 08, 2008 at 21:20

Thursday, May 08, 2008 at 21:20
I can't see that after the Olympics, Chinese demand for oil will fall. There is a huge and rapidly growing middle class there that want all those goodies we have had for the last fifty years. Same goes for India. And they can now afford them. The head of BHP spoke on this today. There is simply no way that oil prices will fall significantly. An occasional short term, small fall perhaps. but then followed by a continuing upwards movement.
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Follow Up By: Member - shane (SA) - Thursday, May 08, 2008 at 22:20

Thursday, May 08, 2008 at 22:20
my comment on china not needing as much oil was based on the great rush to have every thing finished for the Olympics, not just the building but the relocation of many industries away from western eyes, and the major dam and electric projects which means cable power not generators (diesel) . as these middle class get their goodies, there drain on resources gets smarter.
the western world is cracking down on crap products from china and demanding a better quality. i know there is always going to be those that buy cheap and then buy twice further increasing the demand but the trend in changing. in the last twelve months a few on this forum have had a whinge about things such as stainless steel on campers rusting, powder coating lifting etc. this means the process has to get smarter, hence the need for better machines, better power supplies, better working/ manufacturing environment again leaning towards smarter drain on resources.
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Follow Up By: Member - Mfewster(SA) - Friday, May 09, 2008 at 08:25

Friday, May 09, 2008 at 08:25
I just don't see that moving some industries around because of the Olympics will have any impact on oil demand. The biggest industrial centres aren't near Beijing any way. Also don't see the relevance of the comments on Chinese quality. Remember when everyone laughed at Japanese quality? Besides, China now makes very high quality products as well as the cheap stuff. Further, given the emphasis on science and technology in their education system, compared to the west where science and maths graduates have been in decline, you wouldn't want to bet that out quality/innovative edge will last another generation or two. So0 yes, they will keep building new and better plant and energy demand will keep rising, as it will in all countries.
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