Domestic oil price adjustment or are "four even stop"

Posted on 3/14/2016 11:25:08 AM

March 14 China's refined oil price adjustment time window will come again. Despite the recent soaring international oil prices, but domestic refined oil pricing mechanism, the regulatory limit of $ 40 a barrel to break yet. This means that the domestic refined oil price or usher in the "four even stop."
According to reports, this year's Development and Reform Commission issued a notice on January 13, decided to improve the refined oil pricing mechanism, the domestic refined oil price controls set the lower limit, the establishment of regulatory risk oil reserves. When the domestic refined oil prices in the international market price of crude oil anchored below $ 40 a barrel, the domestic refined oil prices are no longer fall.
Since then, China's refined oil price has a "triple stops." The latest round of oil price adjustment time window is 29 February. According to the provisions of China's refined oil pricing mechanism of refined oil price adjustment every ten days, therefore, 14 March 24, the current round of oil price adjustment time window will open again.
Benefit from the oil-producing countries to support the market to prop up, nearly a month since international oil prices soaring. Compared with February 11 hit 12-year lows, Brent crude oil futures prices have now rebounded 34.4%, $ 40 a barrel mark on the station; New York crude oil futures prices are up 46.9%, reaching a new high this year.
Zhong Fu Billiton more Chinese foreign exchange companies, chief market analyst, said the recent major oil-producing countries to stop production agreement made, the good news has led to short-covering in the crude oil, fell sharply to pre-amendment. In addition, the global economy now seems not so bad, much like the scene in 2008 when the financial crisis, the early restoration of pessimism, push crude oil rebounded strongly.
Affected by the recent rebound in international oil prices, a package of changes in the rate of crude oil round the domestic refined oil price cycle corresponding sharply higher. Xinhua News Agency oil price system March 11 released data show that on March 10 the average price of a package of changes in crude oil was 13.09%. However, while Brent oil prices exceeded $ 40 a barrel, but China's refined oil price in the international market of crude oil anchored Median is still below 40 dollars a barrel. Therefore, the industry is widely expected March 14, China's refined oil price adjustment or a "four even stop."
Despite strong recent rebound in international oil prices, the industry was not optimistic about its sustainability. In the United States, although crude oil production continued to decline, but the crude oil inventory data continuously refresh the historical record. As of March 4, US crude oil inventories has exceeded 5.2 million barrels, up 8.2 percent over the beginning of the year.
From the point of view of the performance of speculative funds, speculative fund positions growth also began to slow down. This shows that investors are waiting to see, waiting for the final results of oil-producing game.
International research institutions Acciona Energy analysts think Dan introduced, according to many analysts predict, the international crude oil market is currently around negative factors persist, and not a fundamental change. The current discussions on the major oil producers to maintain production levels in January, is largely verbal intervention. Considering various factors, the next period of time, international oil prices will continue to remain low, the domestic refined oil price or continue the current round of dormancy.
In the domestic oil market, boosted by the international crude oil skyrocketing, the recent domestic gasoline and diesel wholesale prices began to improve, prices will rise, trading more active.
Treasure Island oil analyst Han Cong said that the recent domestic oil prices by the international wholesale market incentives showing gains, but retail prices of refined oil stopped long tune, therefore, gasoline and diesel retail profits are still high rangebound. Treasure Island monitoring data show that, as of now, in theory, domestic retail gasoline profits interval 1200-1430 yuan per ton, and diesel retail profits interval 1120-1240 yuan per ton.

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