SunSirs: The Retail Price Adjustment for China Refined Oil Products of This Round is Once again 'Stranded'
December 05 2024 09:39:42     SunSirs (Selena)The domestic refined oil price adjustment window for this round will open at 24:00 on December 4th. The retail price of refined oil will not be adjusted for the time being. The retail price of refined oil in 2024 has experienced nine upward adjustments, nine downward adjustments, and five stranded adjustments. The crude oil market is mainly volatile during the cycle, and the retail price adjustment of refined oil in 2024 will encounter a "sixth" setback.
Entering this pricing cycle, the international oil price market is mainly volatile. As of the 3rd, the settlement price of the main contract for WTI crude oil futures in the United States is $69.94 per barrel, and the settlement price of the main contract for Brent crude oil futures is $73.62 per barrel. During this cycle, crude oil prices have fluctuated widely, with little overall change. On the one hand, the geopolitical tension between Russia and Ukraine has escalated, and the United States has announced a new round of sanctions against Russia. In addition, OPEC+may extend its production reduction plan again at the December meeting, and it may be postponed until the second quarter of next year. This news is positive for international oil prices. On the other hand, weak demand in China, India, and other regions has led to continued concerns in the market about demand, which is bearish for the oil market. Overall, the adjustment of crude oil change rate during the cycle is not significant. As of the 4th, the change rate of crude oil varieties on the 10th working day was 0.48%, corresponding to an increase of about 10 RMB/ton in domestic gasoline and diesel retail prices, which did not touch the adjustment red line of 50 RMB/ton. Therefore, the retail price of refined oil products will not be adjusted for this round.
In terms of gasoline, the operating rate of local refineries is still at a low level recently. The average operating rate of Shandong refineries is around 57%, and the operating rate of major refineries nationwide is around 84%. The supply of refined oil products is relatively mild. Recently, there has been no holiday support, and travel has returned to normal. The continuous penetration of new energy vehicles has had a certain impact on gasoline demand. However, in recent times, the main external procurement has increased, and market traders have concentrated their purchases, driving the growth of local gasoline refining ship sales and the upward trend of the gasoline market.
In terms of diesel, there has been little change in the supply side diesel market recently. In terms of demand, the increase in demand for marine fuel after the opening of the Bohai Sea has provided some support for the market. However, agricultural diesel has come to an end. In addition, with the decrease in temperature and the gradual decline in outdoor project construction, there has been little change in diesel inventory. Traders and end enterprises are cautious in their procurement operations. Overall, the trend of diesel prices is mainly volatile.
Currently, the crude oil market is mixed with bearish factors, and geopolitical instability continues to affect the market. Oil producing countries' production reduction plans may be extended, and overall, international crude oil may maintain a volatile trend. From a domestic perspective, the operating rate of refineries remains low in the short term, and the supply of refined oil products is relatively normal. The sales of gasoline ship orders have increased, and intermediaries are actively purchasing, resulting in an upward trend in gasoline market prices; In terms of diesel demand, with the gradual weakening of demand and the reduction of diesel usage, traders and end enterprises are cautious in their procurement operations, and the diesel market situation is generally average in the short term.
If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
- 2024-12-20 SunSirs: The Benchmark Prices for Gasoline and Diesel in SunSirs Rise on December 20
- 2024-12-19 SunSirs: The Benchmark Prices for Gasoline and Diesel in SunSirs Rise on December 19
- 2024-12-19 SunSirs: Crude Oil Fluctuates during the Cycle, and the Retail Price of China Refined Oil Products will not be Adjusted temporarily in This Round
- 2024-12-17 SunSirs: The Benchmark Prices for Gasoline and Diesel in SunSirs Rise on December 17
- 2024-12-17 SunSirs: The Price of Refined Oil decreases in 2024 in China, and There will be Little Improvement in 2025