SunSir: Energy, The Market Price of Refined Oil Fell Last Week (December 30, 2019-January 3, 2020)

1  Price Trend

According to the price monitoring of SunSirs, the price of gasoline and diesel decreased slightly last week. The price of domestic gasoline was 6,599 RMB/ ton, 0.62% lower than that of the previous week; the price of domestic diesel was 6,280 RMB/ ton, 1.55% lower than that of the previous week.

2  Analysis of Influencing Factors

Product: last week, the international crude oil fell first and then rose, with high volatility. On December 30, 2019, the domestic refined oil price was increased by 235 RMB/ ton, but the weak market demand dragged down the market price.

Industry chain: Although the crude oil market has good news such as China and the United States reaching a phased agreement, Russia's vacillation on production reduction has increased the downward pressure on oil prices. Last week, the price of international crude oil market fluctuated.

Market: in terms of gasoline, in the new year's holiday gasoline market was good, but the highway on the new year's holiday prohibited the passage of dangerous goods transport vehicles, the refinery's shipment was not smooth, and the gasoline price was stable with a slight decline. In terms of diesel, as the low temperature period was approaching the Spring Festival, the operating rate of outdoor engineering and infrastructure construction was declining, while the logistics was blocked during the holiday, and the overall demand for diesel was in a relatively low season. Overall, the gasoline market was slightly better than the diesel market.

3  Market Forecast

According to the product oil analysis of SunSirs, the price of the international crude oil market is high and fluctuating, the demand for the product oil market was limited during the new year's Day holiday. The product oil replenishment in the later stage may boost the product oil market. The market price of refined oil is expected to be stable and positive this week.

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