PetroChina denies rumor of oil price hike

Shanghai, September 28 (Gasgoo.com) PetroChina, China's largest integrated oil and gas company denied that the price of crude oil will be raised, said xinhuanet.com today.

Rumor has it that the price of domestic crude oil will be raised slightly to 100 yuan a ton. Zhu Wangyou, spokesperson of Sinopec Beijing plant said that the company hasn't received any price adjustment from the government. Sources of PetroChina has also denied having any information on oil price rise.
 
Currently China's oil supply is sufficient and the international oil price is declining. As oil companies' losses eased, the possibility for oil price rise is small, a source from PetroChina said. If the oil price is adjusted, it would be reduced, not be raised he added.

However, Han Xuegong, a famous energy expert, said that even though the oil price hasn't been raised to where it should be, it would not be up now. There is no chance for price rising of crude oil right now, he said. Basically, the oil supply still exceeds demand globally, and the plunging oil price in the world has brought higher profit forecast to China's oil makers.

Market analysts say the rumor of rising oil price may be spread by retailers who expect to stimulate the demand as a result of weak oil sales in the domestic market.