In May, the gasoline market demand increased and the gasoline price rose. According to the price monitoring of SunSirs, the gasoline price at the end of May was 4,893 RMB/ ton, up 4.30% from 4,691 RMB/ ton at the beginning of the month. In May, domestic automobile travel returned to normality, gasoline demand returned to normality. In addition, the weather turned hot, automobile oil consumption increased, the main foreign procurement and downstream replenishment increased. In addition, under the influence of the buying atmosphere, traders' stock operations also increased, and gasoline demand overall improved. At the same time, gasoline exports increased, easing the supply pressure of the gasoline market. In April, China's gasoline exports were 1.9 million tons, up 62.39% year on year.
In contrast, the diesel market is only supported by rigid demand, and the price of diesel has declined slightly. According to the price monitoring of SunSirs, the diesel price at the end of May was 4,932 RMB/ ton, down 3.66% from 5,119 RMB/ ton at the beginning of the month. In summer, the temperature rises and outdoor operation is limited. The fishing off period is keyed in along the coast. The wheat harvest has not yet started. The diesel demand has entered a short-term low. It is only supported by rigid demand such as engineering, infrastructure construction, logistics and transportation, and the downstream customers are not willing to replenish. The decrease of diesel export affected the rise of diesel price. In April, China's diesel export volume was 2.57 million tons, down 9.19% month on month, down 1.1% year on year.
The sharp rise of international crude oil price did not cause the sharp rise of gasoline and diesel prices. On May 28, WTI crude oil price was $33.71/ barrel, up 70.42% compared with the beginning of the month, but it did not guide the price of gasoline and diesel to rise sharply, mainly because the crude oil price in the early stage was seriously depressed, and the recovery of low-priced crude oil after OPEC+ implementation of production reduction in May was obvious. At the same time, the international crude oil price is lower than $40/ barrel, which is below the floor price limit of refined oil. The decline of gasoline and diesel prices in the early stage is much smaller than that of international crude oil.
At present, there are many negative factors such as the increase of crude oil inventory in the United States and the reduction of production in Russia. In the next half month, the international oil price may turn down again. International crude oil prices will continue to be below $40/ barrel. It is expected that the domestic gasoline and diesel prices will continue to rise and face challenges. In June, the gasoline and diesel prices will be stable, moderate and downward.
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