Why the domestic oil prices react so slowly? Quick rising and hesitating falling

The international crude oil prices will become the superstar in the market this year. The crude oil futures prices fell below $90 a barrel, drop of 5%, and reached the lowest point of the international oil prices since February 18. The energy experts thought it is not easy that the international prices can have a significant rising again in a short time.

The domestic petrol and diesel prices, however, did not affluent by the huge drop of the international prices, even the part of gas stations which was promotional has canceled the discounts. This contrast between domestic and international market demands to the refined oil pricing mechanism in China.

Ye Tan, a financial commentator analyzed. “It will spend 22 days in the adjustment of the oil price and will according three countries of origin to decide the price, but it is very hard to reach the international standard.” she said. “This situation might be changed since the mechanism had any revolution”.  

Source: International Financial News

Translated and edited by Yang Jingmin

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