Oil Product Retail Prices in China Expected to Fall as Crude Oil Change Rate Deepens

Crude oil prices swung and then fell sharply this pricing cycle as the Middle East situation shifted and a peace agreement was described as nearing completion, pushing the crude oil change rate further into negative territory. According to Jin10, Sublime China Information calculated that as of the close on June 16, the crude oil change rate on the ninth working day was -10.72%, and gasoline and diesel prices were expected to be cut by 475 yuan per metric ton. With only one working day remaining before the pricing adjustment window, the report said there was a high likelihood that China’s retail prices for refined oil products would be reduced significantly at 24:00 on June 18 (UTC+8), with the final cut possibly exceeding 500 yuan per metric ton. The report added that this adjustment would mark the first back-to-back retail fuel price declines so far this year, and would further lower consumers’ fuel costs ahead of the Dragon Boat Festival holiday.