Oil prices may welcome the “eight consecutive rises” agency expects the next round of price adjustments will reduce prices
China News Service Client, Beijing, March 3 (Reporter Zhang Xu) At 24:00 on March 3, the domestic refined oil price adjustment window will be opened again. Many organizations predict that gasoline and diesel prices will increase by about 270 yuan/ton, which is equivalent to an increase of 0.21 yuan per liter for No. 92 gasoline and 0.23 yuan per liter for No. 0 diesel.
After the price adjustment is implemented, it will become the first “eight consecutive rises” of the current price adjustment mechanism since its implementation in the spring of 2013.
February 18, Vehicles are refueling at a gas station in Fuzhou, Fujian. Photo by China News Agency reporter Lu Ming
During this cycle, the international crude oil prices continued to rise thanks to news that Saudi Arabia’s production cuts were implemented well and the US crude oil production decreased.
Zhuo Chuang Information stated that after the implementation of this oil price increase, it will be the first “eight consecutive increase” since the implementation of the refined oil pricing mechanism on March 26, 2013. Domestic gasoline and diesel retail price limits have accumulated. Approximately increase by RMB 1,450/ton and RMB 1,405/ton. Based on the 50L fuel tank of an ordinary private car, a full tank of fuel will cost 57 yuan more than before November 19, 2020.
Dai Tiandong, an analyst at Zhuo Chuang Information, said that the expectation of “eight consecutive rises” has boosted the market, and after the Spring Festival, domestic demand for refined oil has gradually recovered. Although it is not as expected, market participants are optimistic about the market outlook. attitude. Therefore, during this cycle, the wholesale price of domestic refined oil products has shown a continuous upward trend, with a cumulative increase of over 500 yuan/ton, and the increase in oil prices in some areas as high as 800 yuan/ton.
The next round of domestic oil price adjustment window will be opened at 24:00 on March 17, 2021. Looking ahead, Longzhong Information analyst Li Yan believes that OPEC+ may increase production slightly, and Saudi Arabia may cancel additional production cuts. It is expected that the next round of domestic product oil price adjustments will have a higher probability.
However, in the medium and long term, Goldman Sachs’ latest report points out that driven by low inventories and rising marginal costs of upstream activities, the subsequent rise in international oil prices may be faster and the rate of increase will be even higher. Brent crude oil futures are expected to reach US$70/barrel in the second quarter and US$75/barrel in the third quarter, which is US$10/barrel higher than the previous forecast. (End)