Refined oil product prices to rise in 2010

09:38, March 08, 2010      

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In 2010, domestic refined oil prices will continue to rise with international crude oil prices, predicted Rong Guangdao, president of Sinopec Shanghai Petrochemical Co. yesterday.

The average global crude oil price was around 60 dollars per barrel in 2009. Financial institutions expected that the average crude oil price would stay at 80 dollars per barrel, up 30 percent year on year.

Rong noted that crude oil price in the world market has reached 79.5 dollars per barrel, but the price hike was not reflected in the domestic market. "If crude oil prices continue to stay at a high level, prices of refined oil products in the domestic market will be adjusted."

In addition, Rong said, China's oil refining sector faced severe overcapacity. In 2009, China's refineries had a total capacity of 480 million tons, but only 372 million tons of crude oil was processed.

In the first three quarters of 2009, Sinopec Shanghai realized net profits of 1.59 billion yuan (232.93 million U.S. dollars). "Before the new refined oil pricing mechanism which links the prices of oil products with international crude price was implemented in 2009, China's refineries had experienced only negative profits."

By People's Daily Online
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