Refined oil price needs to increase, the price of refined oil and demand are out of proportion
Staff Reporter | | Jun 17, 2013 07:43 PM EDT |
Last Friday, the price of international crude oil had three consecutive rises, while the futures of New York crude oil reached the highest WTI97.85, raising $0.98. As of June 14, the oilchem website data showed that the main indexes of crude oil-varieties compound rate was 1.27%, rising 0.32% compared before. The corresponding price is about 75 yuan/ton. The next round of pricing adjusting will be open on June 21, which will take effective in the early morning of June 22 2013.
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Analyst Qianqian Wang from Oilchem said that the price of refined oil contrarian upside, rising price under the poor situation. Judging from the situation of Northeastern refined oil market, the main price adjustment is followed by mian sales company as well as some large state-owned enterprises. Besides, Oilchem will come up with a preferred policy based on market demand. Given the profit evaluation, the discount rate is limited, therefore, it is sure that the price will rise.
It is much easier for small traders to operate compared to some enterprises with freedom limitations. The price of small traders will reflect the performance of the market. Some small refining companies were happy to see the change. One of them said "it is easier for them to sell the goods if the price keeps rising. Moreover, rising prices will have a positive impact on the refined oil market. Our prices are flexible and more puncture to reflect the market demand. Our price is based on market, not on price change."
It is anticipated that the price rise won't have too much positive impact on weak market. On the contrary, it will cause more serve fierce competition among gas stations because the price difference will be larger and larger.
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