The price of domestic gasoline and diesel continued to decline. As of December 26, the price of domestic 92# gasoline was 7,442.8 RMB/ton, and the price fell 5.07% in December; The domestic price of 0# diesel oil was 7,183 RMB/ton, with a decline of 14.27% in December. The contradiction between supply and demand in the market was acute, and the decline in the refined oil market remained unchanged.

On the cost side, the international crude oil price fell first and then rose, and the overall price fell slightly. As of December 23, the settlement price of the main contract of the WTI crude oil futures in the United States was 79.56 dollars/barrel, and the settlement price of the main contract of Brent crude oil futures was 83.92 dollars/barrel. The Federal Reserve hinted that the interest rate increase is far from over and is not close to the end of monetary tightening. The persistent economic heat in the first half of December triggered the market's concern about the Federal Reserve's transition from "dove" to "eagle", which may disappoint the Federal Reserve's previous desire to slow down interest rate hikes. The market provided the basis for the Federal Reserve to curb inflation and maintain the path of monetary tightening, which triggered a general decline in risky assets. In addition, the overall economy was weak. The severe epidemic in Asia continued to drag down demand expectations. The outlook for energy demand was still not optimistic. Economic weakness depressed oil prices, which fell sharply in the first half of the month. In the second half of the month, in response to the Group of Seven's price ceiling on oil exports to Russia, Russia said it might cut oil production, tightening expectations to heat up the oil market. The news that the United States planned to store strategic oil reserves also brought good news to the oil market. In the second half of the month, international oil prices recovered their decline. On the whole, crude oil prices fell slightly, and domestic oil product market declined.

Supply side: In December, the operating rate of Shandong refineries has increased, the supply side has increased, the supply of main refineries is still abundant, the pressure on main shipments remains, and the gasoline price continues to fall. Recently, the average operating load of atmospheric and vacuum distillation units in Shandong's main refineries has risen to about 69%, the manufacturer's inventory remains unchanged, and the supply of gasoline and diesel is loose. As a result, the supply of refined oil resources is limited, the operators' intention to enter the market is reduced, and the market buying and selling atmosphere is light.

Demand side: After the implementation of policies such as the liberalization of domestic epidemic control, residents' exploratory travel has gradually increased, domestic gasoline demand is expected to recover, and the decline in gasoline is limited. In terms of diesel oil, the demand for diesel oil has declined. In winter, the commencement of outdoor industrial and mining, infrastructure and other industries has further declined. The activity of the logistics industry has decreased. The downstream consumption of diesel oil will continue to shrink. In November, diesel oil exports increased slightly, but the impact on the diesel market is not significant. The commencement of outdoor oil enterprises is limited. The demand for diesel oil is poor, and the price of diesel oil continues to fall.

SunSirs oil product analyst of the Business Agency, believes that Russia said it might cut oil production, and tightening expectations will bring some benefits to the oil market. With the news that the United States plans to store strategic oil reserves, crude oil may rise in shock. In terms of domestic supply, the overall operating rate of main refineries and local refineries was maintained, and the output of gasoline and diesel was relatively stable. The control of domestic epidemic situation has been lifted accordingly, and residents' travel caution has increased, but overall, the recovery of gasoline demand is slow, the gasoline market may be supported, and the price will remain volatile in the later period. In terms of diesel, due to the impact of low temperature, the operating rate of large industrial and mining infrastructure and other industries is expected to decline. The demand for diesel is poor, and the diesel market price may continue to decline in the later period.

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