Thursday, April 30, 2015

Low Oil Price, American Customers Go for SUVs

Big cars like SUVs and pickups becoming Americans favourite as fuel prices remaining low. The trend has started in the early 2015 until this month. Because of gasoline price drop about third from a year before, sales of large and luxury sport vehicle rose about 31 percent in the first quarter. Meanwhile, the family sedan and energy recovery technology has lost the customer interest. It seems like the American customers believe that the low price gasoline will be there forever. Even the president words to consider fuel-efficient was not been heard.

How long will the low price gasoline remain? With over-excited market, it seems like not last in long time. Over supply, decrease the price. While the price goes low, little by little the demands arise. Then it is not impossible to go over demand and increase the price.


Moreover, the low price of crude oil may last soon enough. If the supply of gasoline diminish and oil price increase, then the fuel price will be higher.