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Strategies & Market Trends : Rande Is . . . HOME

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To: Rande Is who wrote (27392)	6/9/2000 9:14:00 AM
From: Kevin Shea	Read Replies (3) of 57584

Just a view on gas prices....I believe that there is some sentiment that gas prices will remain high...one long term impact is the expectations regarding up coming deployment of hydrid power systems in automobiles. These vehicles get 40-70 mpg ( doubling current averages). Toyota already has a 4 passenger car, honda has a 2 passenger, Ford is geared up to a small SUV in 2002. Current data suggests an interesting shift towards smaller cars driven by young AND old demographics -- older yuppies are seeing the Reasonableness of smaller cars in their future. All in all, I see that gas prices may remain high as we move into a new era of automobile power plants. Given supply and demand, and "price fixing", it can be seen that better car MPG will play havoc with producer prices UNLESS gas price is stabilized around a "new" standard say around $1.50 not 1.10 of late.... Just my observation and opinion.

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