China's Refined Oil Price Set to Rise for First Time in 2018 on Increased Demand
Dou Shicong
DATE:  Jan 10 2018
/ SOURCE:  Yicai
China's Refined Oil Price Set to Rise for First Time in 2018 on Increased Demand China's Refined Oil Price Set to Rise for First Time in 2018 on Increased Demand

(Yicai Global) Jan. 10 -- The price of China's refined oil is expected to increase for the first time in this year due to higher demand related to preparations for Chinese New Year and price increases internationally.

Several monitoring institutions predict the price to go up by about CNY145 (USD22.22) per ton this time, reported online media outlet CNStock today.

Analysts forecast diesel prices and gasoline prices to move in different directions in the near-term, with prices for the former soaring recent. Demand for diesel has been sluggish because adverse weather conditions have reduced outdoor engineering and logistics activities.

The country's refined oil underwent 25 pricing periods last year, including 6 periods of falls, 11 periods of increases, and eight periods in which the price remained flat.

Prices mainly declined during the first half of 2017 due to increased inventories of international crude oil. Oil prices began to bottom out in the second half following an agreement between OPEC and Russia to extend production cuts to this year. The goal of the reductions, which started at the end of 2016, is to stabilize the international market.

Many international institutions expect oil prices to rise on the prolonged output reductions, with Goldman Sachs raising the target price of Brent Oil for this year from USD58 per barrel to USD62. Union Bank of Switzerland also upped its expected price from USD55 per barrel to USD60 for this year.

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Keywords:   Refined Oil,OPEC,Brent Oil,RUSSIA