|Speculative capital fuels world oil prices|
| The appreciating covet on the international commodity market and the depreciating US dollar against the euro, sterling and yen are probably the biggest influence behind the oil prices on the world market. |
Financial factors may still be the main reason for the sharp rise in international oil prices.
Accumulated growth in international oil prices in May reached almost 30%, marking the largest increase in 10 years. On May 29, the last trading day of the month, New York crude oil futures prices closed at 66.31 USD a barrel , double the lowest prices in December last year when the price was about 32 USD per barrel.
As a result of the recent fall of the value of dollar against the euro, pound and the Japanese yen, dollar-denominated oil prices are rising.
Economic recession in major developed countries curbed demand for oil consumption. From the aspect of "risk price ", there were no major geo-political incidents in the recent period that can influence oil prices.
There is no doubt that the soaring oil price will offset global economic stimulation efforts and cast a new shadow for the world economic recovery.
A trader in the crude oil futures pit at the New York Mercantile Exchange
|Power consumption continues to drop, oil sales set new high|
|fluctuant oil prices|
China cut benchmark retail gasoline and diesel prices by 2 percent and 3.2 percent, respectively. Prices were last cut less than a month ago, on Dec. 19. At that time, benchmark gasoline and diesel prices were lowered by 14 percent and 18 percent, respectively. The latest cuts were the first since the new pricing mechanism for refined oil products took effect on Jan. 1, 2009.
China raises benchmark retail prices of gasoline and diesel by 290 yuan (42.46 U.S. dollars) per tonne and 180 yuan per tonne, respectively on March 25,2009. It is the second oil price adjustment this year. The National Development and Reform Commission (NDRC), China's top economic planner, cut benchmark pump prices of gasoline and diesel by 140 yuan and 160 yuan per tonne, or 2 percent and 3.2 percent, respectively, on Jan. 14. .