SunSirs: High Crude Oil Prices, China Gasoline and Diesel Prices Continue to Rise

Last week, the international crude oil price was running at a high level, the terminal market was bullish, the demand for refined oil was supported, and the domestic product oil price was up. According to the monitoring data of SunSirs, the gasoline price on December 11 was 5,707 RMB/ ton, up 2.38% from the beginning of the week; on December 11, the price of diesel oil was 4,993 RMB/ ton, up 1.67% from the beginning of the week.

Due to the positive news of the COVID-19, the market hopes for a rebound in fuel demand, combined with the news of the oil well attack in Iraq, the negative effect of the substantial increase in US commercial crude oil inventories was offset. In the near future, oil prices are likely to remain strong. WTI crude oil prices rose 0.67% last week, while Brent crude oil prices rose 1.46%.

In terms of gasoline demand, the weather turns cold, the number of car trips increases, and the demand for gasoline market is supported. In addition, the international oil price is rising, and the demand for diesel oil in the terminal market is increasing. In terms of diesel demand, the domestic weather is getting colder, and the outdoor diesel demand for road engineering and infrastructure projects is gradually declining. However, the rush work of some infrastructure projects a year ago has a certain supporting effect on the diesel market demand.

As of December 11, the average start-up load of the daily decompression unit was about 75%, and the start-up load of the refinery was basically stable, and the domestic product oil supply was sufficient.

SunSirs oil product analyst believes: the growth in the oil market's demand for vaccine vaccination is expected to push the international oil price to a periodic high, but there is no real supply-demand news to boost it. At the same time, the demand of the oil product market remains rigid. In the short term, China oil product market price is expected to decline steadily.

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