China to Cut Domestic Oil Prices

Analysts believe China may cut prices for refined oil products on Friday amid global oil price drops and lackluster performances by the country’s oil refiners.

Forecasts showed that the moving weighted average price of Brent, Dubai and Cinta crude is expected to fall by 4 percent or more on Friday, creating a window for China to adjust its domestic oil prices.

The drop would mark the fourth time this year for the National Development and Reform Commission (NDRC), China’s top economic planner, to cut fuel prices.

The NDRC may reduce retail prices for both gasoline and diesel by 300 yuan (48 U.S. dollars) per tonne, analysts said.

The move would likely be a response to falling oil prices on international markets, a trend that analysts predicted will continue in the short-term.

U.S. crude prices tumbled nearly 3 percent last Friday after the U.S. government took measures to deal with a fuel shortage caused by Hurricane Sandy.

The domestic oil market has also suffered from weak demand this year.

via Xinhua

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