The domestic oil price adjustment window opens on the 17th and is expected to be lowered before the Spring Festival
China News Service, January 17th (China News Finance and Economics Ge Cheng) At 24:00 on the 17th, a new round of domestic refined oil price adjustment window will open.
This is the second price adjustment for domestic refined oil in 2023. Following the last round of price increases, agencies predict that this round of refined oil may show a downward trend. This means that the price of refined oil is expected to be lowered before the Spring Festival.
“During this round of pricing cycle, international crude oil showed a trend of rebounding following falling. Although crude oil continued to rise in the latter part of the pricing cycle, it was still at a lower level compared with the previous cycle.”
Wang Shan, an oil analyst at Jinlianchuang, said that at the beginning of this cycle, investors were worried regarding the economic recession and the outlook for energy demand, and the prices of US WTI crude oil futures and Brent crude oil futures plummeted by more than US$7/barrel one following another. However, following China optimized and adjusted its epidemic prevention and control policies, the market is optimistic regarding China’s energy demand, which is good for oil prices. In addition, the Group of Seven intends to set more specific restrictions on Russian oil products, and concerns regarding reduced fuel supplies have also supported oil prices. The U.S. dollar index remained at a nearly half-year low, which also boosted international crude oil priced in U.S. dollars.
According to agency estimates, as of January 16, the ninth working day of this round of refined oil price adjustment cycle, the average price of reference crude oil varieties is 77.52 US dollars per barrel, with a change rate of -3.78%. Yuan, which is equivalent to a reduction of regarding 0.2 yuan per liter for gasoline and diesel.
Yang Xia, a refined oil analyst at Zhuo Chuang Information, said that in the later stage, market sentiment has improved, and future demand growth is expected to be better. Therefore, international oil prices will continue to trend strongly in the short term, and attention should be paid to whether it can effectively break through the pressure level.
Wang Shan also held a similar view, “In the later stage, optimistic demand expectations may support crude oil to maintain a strong trend.”
