China's Refined Oil Prices Hike for Tenth Time This Year Amid Crude Oil Surge
The price of crude oil surged in the latest pricing cycle, driving up retail prices for refined oil products in China. The tenth increase of the year, this hike follows four decreases and one instance where prices remained unchanged.
Crude oil prices rose due to several factors, including the normalization of blockades in key shipping lanes and difficulties implementing OPEC+'s planned production increases. Additionally, tighter EU sanctions against Russia added to overall crude oil trading costs, supporting higher prices.
The surge in crude oil prices resulted in a domestic price hike of 685 RMB per tonne for gasoline and 655 RMB per tonne for diesel, corresponding to a 13.25% rate of change by the tenth working day.
Market participants remain cautious due to low inventory levels and the ongoing impact of high costs, alternative energy sources, and rainy weather on fuel consumption. While crude oil prices provide a strong floor for domestic gasoline and diesel prices, further price increases may be limited by these factors.