China to Cut Domestic Oil Prices

Analysts believe China may cut prices for refined oil products on Friday amid global oil price drops and lackluster performances by the country’s oil refiners.

Forecasts showed that the moving weighted average price of Brent, Dubai and Cinta crude is expected to fall by 4 percent or more on Friday, creating a window for China to adjust its domestic oil prices.

The drop would mark the fourth time this year for the National Development and Reform Commission (NDRC), China’s top economic planner, to cut fuel prices.

The NDRC may reduce retail prices for both gasoline and diesel by 300 yuan (48 U.S. dollars) per tonne, analysts said.

The move would likely be a response to falling oil prices on international markets, a trend that analysts predicted will continue in the short-term.

U.S. crude prices tumbled nearly 3 percent last Friday after the U.S. government took measures to deal with a fuel shortage caused by Hurricane Sandy.

The domestic oil market has also suffered from weak demand this year.


via Xinhua

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza