If this WSJ article is to be believed. Then we shouldn’t be hoping for any relief from the high oil prices. Because it seems that the major oil producers have done nothing to increase production despite the high demand:
Last year, the region’s six largest petroleum exporters — Saudi Arabia, United Arab Emirates, Iran, Kuwait, Iraq and Qatar — curbed their output by 544,000 barrels a day. At the same time, their domestic demand increased by 318,000 barrels a day, leading to a loss in net exports of 862,000 barrels a day, according to the U.S. Energy Information Administration.
If you own a car in the Philippines, it could be sound economics to ditch it for a more thrifty one. Considering that the average sedan’s displacement in the Philippines is 1.6L, it could get you about 10-12 km/liter. But with traffic and all you could get much lesser mileage from your car.
I wouldn’t be surprised if the 1.6L in the Philippines would go the way of the Gas Guzzling SUV’s in the United States. Wherein because of the high oil prices, nobody would want to buy them, causing a sharp drop in the car’s resale value.
Category: Misc, Automotive, Oil Price
