Domestic oil price adjustment may be out of six consecutive falls

- Mar 04, 2019-

After more than two consecutive months of decline, the start of 2019 * week, multiple positive news drove the international oil price upward.Affected by this, the domestic reference crude oil change rate is in the negative range to pick up, on January 14, refined oil retail price limit or will be stranded or raised, no "six consecutive drop".

Multiple survey data show OPEC production fell by 530,000 BPD/solstice 32.6 million BPD in December 2018, the highest since January 2017 *.Saudi Arabia's output fell by 420,000 BPD.Market investors are taking heart from the latest round of supply cuts, believing that the OPEC initiative came before the agreement took effect, meaning crude exporters are eager to stabilize supply and demand in the market.

In addition to the warm welcome from production cuts, the overall situation in the crude oil market is improving and U.S. stocks have bottomed out.U.S. oil rig activity fell eight to 877 in the week ended Jan. 4, a three-week decline from 742 a year earlier, according to service company Baker Hughes.Over the same period, the number of RIGS operating in North America fell by two from the previous month, as Canada increased by six to 76.

That compares with a gain of 87 cents, or 1.85 per cent, to settle at $47.96 a barrel on the New York mercantile exchange on January 4.Brent crude for march delivery in London was up $1.11, or 1.98 per cent, at $57.06 a barrel.

Domestic oil price adjustment reference crude oil rate also rose in negative.Zhuo chong, according to data on January 4, closed domestic 5 workdays reference crude oil rate of 2.23%, corresponding to the petrol and diesel by 85 yuan/ton, or to the higher price, 92 # gasoline and 0 # diesel cut 0.07 yuan per litre to 0.08 yuan per litre cut - 10 # diesel, if the amplitude to carry out the pricing, the consumers fill it up with a case (50 l) of gasoline, saves 3.5 yuan.

"However, the late international crude oil will continue to rise under the agreement to cut production.In addition, the retaliatory rebound of U.S. stocks will continue to be positive for crude oil to rise slightly, and continue to pull up the average level of crude oil in this cycle, and the rate of change is expected to change from negative to positive.Zhang jinyi, an analyst with zhuo chuang information, thinks that overall, the new round of retail price limit for refined petroleum products may fail to achieve "six consecutive declines".