Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Wednesday, January 17, 2007

Baby You Can Drive My Car

I haven't been posting about metals lately because metals have been dull, with the exception of uranium. I expect I'll find much more to write about when I go to Vancouver for next week's 2007 Vancouver Resource Investment Conference.

Meanwhile, there is some interesting news on China and cars. China has zipped past Japan to become the world's second-largest car market (the US is still #1).

According to the BBC...

Car sales - excluding people carriers and 4x4s - jumped 37% in 2006, the China Association of Automobile Manufacturers (CAAM) said. Overall, Chinese vehicle sales jumped 25% during 2006 to 7.22m units.

That is part of the reason why Chinese oil exports hit a record in 2006, coming in at 145.18 million tons of crude oil, up 14.5% over the previous year.

Naturally, with Chinese car sales booming, oil imports in China should rise.

Meanwhile, the market still seems to be oversupplied, or at least the hedge funds are piling on short positions in crude. But that's a short-term thing -- don't sweat the short-term.

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