Mar China Gasoline and Diesel Price to Improve Mildly
In the last several days, China’s refined oil market gradually turned from bullish to moderate, and the dealings in the market underperformed. On the one hand, the international crude oil prices fluctuated downward at the end of February, and some participants started to adopt a bearish attitude. On the other hand, most downstream users had finished their replenishment, and they started to consume their inventory, resulting in oversupply in the refined oil market. The price increase in gasoline and diesel needs support of new bullish factors. Though the National Development and Reform Commission is estimated to raise the retail ceiling prices of gasoline and diesel further on March 3, the profits at end retailers are still relatively weak, and considering the inventory at traders and weakened international crude oil prices, the prices of gasoline and diesel are predicted to trend flat in the short term.
In February, the average price of 92Ron gasoline at China’s state-owned refineries was RMB 7,161/mt, up 9.24% M-O-M, while the average price of 0# diesel at state-owned refineries was RMB 6,050/mt, up 8.42% M-O-M. Meanwhile, the average price of gasoline at Shandong independent refineries was RMB 6,250/mt, up 12.8% M-O-M, and the average price of diesel at Shandong independent refineries was RMB 5,000/mt, up 7.51% M-O-M. As for international crude oil prices, WTI price averaged $59.13/bbl, up 13.5% M-O-M, and Brent price averaged $62.28/bbl, up 12.66% M-O-M. The monthly average prices of both WTI and Brent hit the highest point in the last 13 months.
