Result of price adjustment on refined oil products by China’s government will be known on May 12. Some agencies believe that the price will go up for the second time in 2016.
The rise in retail price of gasoline and diesel may be about RMB135 yuan per ton.
Price of refined oil products in the Chinese market has been adjusted based on that in the international market. The flooring price is US$40 per barrel while the ceiling price is US$130.
The rise in crude oil price in the global market may drive that in the Chinese market.
Price of crude oil products of six types was more than US$40 per ton. Then price of crude oil products in the global market may range from US$44 per ton to US$48 per ton.
Oil price remains stable in the global market. There is no obvious evidence that demands of oil products will increase in the short run. However, output of crude oil in Canada was reduced by fire, leading to the decrease in supply of crude oil to the global market. The Kingdom of Saudi Arabia has increased price of crude oil supplied to other countries except for America, reflecting the fact they also believe the possibility of rise in oil price in the global market.