One of the factors keeping the world price of oil at historically high levels is continually increasing demand and relatively static supply. One of the biggest drivers of that growth is the ever-increasing population of cars in China, which, along with India, has been the fastest growing markets. That growth in the number of cars means a commensurate increase in the fuel needed to power them. By 2010, gasoline consumption is anticipated to increase by almost twenty-five percent relative to 2006. Given the twenty-seven percent increase in car sales last year that is probably a very conservative estimate. This increase in gas consumption will also continue to make Chinese pollution worse in the coming years. It's not realistic to expect growth in China to be scaled back in order to help satisfy the rest of the world's appetite for oil, so that means something needs to change dramatically.
[Source: Resource Investor]