Domestic increase in oil prices to deal with oil difficulties

High oil prices have become a headache for both oil producing and consumer countries. At the International Energy Conference organized by the oil-producing country of Saudi Arabia on June 22, Saudi Arabia stated that if necessary, it will add 200,000 barrels to the existing daily output of 9.5 million barrels for the rest of the year.
Vice President Xi Jinping attended the meeting and said that China is not only a big energy consumer, but also a big energy producer. China's energy is mainly supplied by domestic sources. Over the years, its energy self-sufficiency rate has remained at around 90%. The price of refined oil was adjusted on June 20, which is conducive to increasing the supply of domestic refined oil, ensuring market supply, and promoting the saving of oil resources.
The oil conference is difficult to retreat from high oil prices. Although the “oil ministers and consumer countries ministerial meeting” that was held on June 22 was urgently held for only one day, it includes the politicians of 36 countries, including Chinese Vice President Xi Jinping and British Prime Minister Brown, and 20 Leaders of several major oil companies attended the meeting.
Saudi Arabia said that the country will increase the daily output of crude oil to 12.5 million barrels by the end of 2009, and in the long run, the future oil production scale will reach about 1.5 times the current level, which is about 15 million barrels. In view of the current tight oil supply problem, Saudi Arabia will increase its current output of 9.5 million barrels of crude oil to 9.7 million barrels per day. Saudi Arabia is willing to continue increasing its oil production in order to stabilize oil prices.
On the same day, Kuwait stated that Kuwait will not hesitate to increase production when the market needs it.
Prior to this, the outside world had great expectations for the convening of this meeting and hoped to solve the current tensions in oil. However, during the meeting, all parties failed to reach a consensus on the reasons for the rise in oil prices, and there were serious differences between oil consumer countries and producer countries. On the one hand, oil-consuming countries believe that the high oil prices are caused by the imbalance between supply and demand; on the other hand, oil-producing countries believe that this should be attributed to market speculation. However, some people also pointed out that this is a positive signal for the supply and demand sides to respond to the soaring oil prices, and that oil-producing and consumer countries face each other to solve problems.
Vice President Xi Jinping attended the meeting and stated that in recent years, with the rapid economic and social development in China, China’s energy consumption has grown rapidly, but the overall level is still low, and per capita energy consumption is equivalent to only 84% of the world average. The per capita oil consumption is only 1/2 of the world average, and the oil per capita import amount is only 37% of the world average.
The increase in oil prices affects a number of industries China's energy consumption is very large, low energy efficiency, great potential for energy conservation. As of the end of 2007, China Petroleum consumed about 380 million tons. In the face of the rising international oil price impact on China's economy, we must take practical measures.
Experts pointed out that for the country, the impact of Saudi actions is almost minimal. Domestic oil prices are different from those of foreign countries. They are subject to macro-control and are currently in the process of catching up with international oil prices.
At a time when international oil prices have reached new heights, China has recently significantly adjusted the prices of retail gasoline and diesel to control domestic oil demand. The National Development and Reform Commission announced on June 19 that since June 20, gasoline and diesel prices have risen by 1,000 yuan per ton, and aviation kerosene prices have increased by 1,500 yuan per ton.
Taking the Beijing refined oil market as an example, the number 90 gasoline rose from the original 4.99 yuan per litre to 5.80 yuan per liter; 93 petrol rose from the original 5.34 yuan per litre to 6.20 yuan per litre; 97 petrol from the original 5.68 yuan It rose to 6.60 yuan per liter; 98 gasoline rose from the original 6.27 yuan per liter to 7.19 yuan per liter.
Xu Kunlin, deputy director of the price division of the National Development and Reform Commission, said on the 20th when he was visiting Xinhua.com that the price adjustment of refined oil products was relatively large, so the impact on the related industries would be relatively large, and it would have a certain impact on CPI, but because of consumption with residents. Closely related prices are not adjusted, so the direct impact will be relatively small, and the indirect impact will be greater.
The rise in oil prices will inevitably trigger the domino effect of the domestic economy. Due to the increase in costs, the most affected are the transportation industry. For example, the price of aviation kerosene will increase by 1,500 yuan per ton. After the increase in oil prices, the annual cost of airlines will increase by more than 100 million yuan. Metallurgical, light industry, petrochemical, agricultural and other related industries are affected by different degrees.
Although the steel industry is not directly affected by rising oil prices, it will curb the downstream demand for steel. On the one hand, the auto market will be affected. Since the beginning of this year, the cost of auto raw materials has risen. Coupled with further increases in oil prices, it may affect the potential purchase intention of some potential consumers. On the other hand, higher transportation costs will provide raw material costs and indirectly increase the end-use price of steel products. Suppress steel demand.
Also, as oil prices rise, the costs of oil-related and raw materials-related industries will increase substantially, especially in the chemical fiber industry. Oil is an important industrial production raw material, and the increase in oil prices will directly increase its production costs.
The positive effect is greater than the negative effect The impact brought by the increase in oil prices has penetrated into many areas, but some experts believe that this measure against the high international oil price may exert pressure on price increases. Overall, the positive effect is much greater than Negative effects.
Insiders pointed out that this time the price adjustment is relatively large, mainly to solve the problem of inversion, because China's crude oil consumption needs nearly half of the export, refined oil prices and international crude oil prices are seriously upside down, resulting in loss of refining companies, oil supply in some areas, tight .
Previously, the country has been maintaining low oil prices with financial subsidies, resulting in the nation’s payment for a large number of energy-consuming large households. This situation has led to a high level of domestic oil consumption growth has been difficult to reverse. It has been reported that when the consumption of large-capacity SUVs dropped drastically due to high oil prices abroad, domestic sales of SUVs have increased substantially for three consecutive years. Now, let oil prices gradually return to the market mechanism, so that resource prices truly reflect its valuable value, it is undoubtedly possible to "price system," thereby improving energy efficiency. In recent years, China’s economy has maintained sustained and rapid growth, but China’s extensive economic development mode has not fundamentally changed. Economic growth is still largely dependent on high investment in resources. On the one hand, the bottleneck of resource constraints in economic development has become more and more prominent; on the other hand, resource utilization efficiency is low. At present, the average energy consumption of the main product units in China's power, steel, non-ferrous metals, petrochemicals, building materials, chemicals, light industry, textiles and other industries is 40% higher than the international advanced level; the integrated energy consumption of steel, cement, and paperboard products is higher than international The advanced level is 21%, 45% and 12% higher respectively. The low energy price is an important cause of extensive business operations and waste of resources. To change this situation, we must play a regulatory role in the price mechanism.
At the same time, in order to control the chain reaction brought about by the increase in oil prices, the National Development and Reform Commission requested that industries such as railway passenger transport, urban public transport, rural road passenger transport, and taxis, and liquefied gas and natural gas not increase their prices, and also introduced a series of comprehensive supporting measures to increase the The subsidy to the farmers, the hard-working groups and the affected industries, and various subsidy funds will be allocated to the central government.
Some experts suggest that we must be alert to imported inflation caused by rising oil prices. The related industry's production costs that are driven by rising oil prices are passed on to downstream companies or end consumers, and the part that is passed on will increase residents’ consumer spending.




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