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Retail fuel rates reduced after global crude falls

By Du Juan (China Daily) Updated: 2014-10-18 09:06

Retail fuel rates reduced after global crude falls

A gas station in Nantong, Jiangsu province. [Provided to China Daily]

It is estimated that US crude output will reach 9.5 million bpd in 2015.

Wang Fei, an oil products analyst at Shandong Longzhong Information Technology Co, said this round of retail fuel price cuts will bring pain to gasoline producers .

"Many refining companies in Shandong province are already in the red because of declining diesel prices. Some companies have suspended production for maintenance," Wang said.

Analysts said it is still unclear whether prices have bottomed out yet, and they said that traders should be cautious about piling up inventories.

The profitability of gas stations is narrowing, said Wang Yanting, an analyst with JYD.

"Private-sector gas stations will have to carry out promotions to compete with State-owned ones, given weakening downstream demand," she said. However, major consumers such as the transportation sector will benefit from lower fuel prices.

Retail fuel rates reduced after global crude falls

Retail fuel rates reduced after global crude falls

China lifts resource tax to 6% for crude oil, natural gas  China not likely to face diesel shortage in Q4

 

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