Reduce the price of gasoline and diesel by 150 yuan and 145 yuan per ton——

Domestic finished oil prices are coming down in the fourth quarter

After the last round of oil price adjustment stranded, domestic oil product prices ushered in the first drop in the fourth quarter.

According to the monitoring by the price monitoring center of the national development and Reform Commission, during the period of this round of price adjustment of refined oil (October 8-18), the international oil price dropped significantly. On average, the oil prices of Brent in London and WTI in New York decreased by 3.62% compared with the previous round. Affected by this, the retail price of domestic gasoline and diesel will be reduced accordingly. According to the recent changes in oil prices in the international market and the current price formation mechanism of refined oil, from 24:00 on October 21, 2019, the price of domestic gasoline and diesel will be reduced by 150 yuan and 145 yuan per ton respectively.

According to Xu Wenwen, an oil product analyst at Longzhong information, the price of an ordinary private car with 50L fuel tank capacity will be reduced by about 6 yuan after the price adjustment. For a large logistics transport vehicle with a full load of 50 tons, the fuel cost will be reduced by about 48 yuan per 1000 kilometers.

According to reports, the continuous increase of US crude oil inventory and poor economic data of major economies are the main reasons for the decline of oil prices in this price adjustment cycle. According to the price monitoring center of national development and Reform Commission, the current crude oil supply is relatively loose, but the slowdown of global economic growth expectation makes market confidence very weak, and the news factors will still affect the short-term oil price shock operation. On the one hand, geopolitical tensions in the Middle East have eased, easing market concerns about regional crude oil production. On the other hand, due to trade friction and other factors, the global economic growth rate is weak. The International Monetary Fund forecasts that the global economic growth rate will drop to 3% this year. Signs of slowing economic growth prompted major oil agencies such as the U.S. energy information agency and OPEC to cut global crude oil demand growth.

According to Li Yan, an analyst with Longzhong information, the next round of oil product price adjustment will start with an upward trend, with a range of about 90 yuan per ton, based on the current international crude oil price level. At present, OPEC has indicated that it will stick to the production reduction agreement, and there are signs of mitigation of Global trade risks, all of which are good for oil prices. However, market concerns about the global economy and crude oil demand still exist, and negative factors may inhibit the growth. It is expected that the next round of price hike of refined oil will be more likely.