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The Impact of International Oil Price Fluctuation

Dec. 26, 2018

In addition to the price increase of refined oil, the prices of other energy and raw materials will rise simultaneously, which will increase the travel cost for residents and the production cost for enterprises. On the contrary, the sharp drop in international oil prices will also reduce our travel and production costs.


The Impact of International Oil Price Fluctuation


At present, global economic integration has become a foregone conclusion, and the impact of various changes in the international situation on China is inevitable. Today, we will analyze the impact of the international situation on the international oil price. Which international situations affect the international oil prices is, for example:


1. Political unrest in Libya has caused serious damage to local oil products.

2. U.S. sanctions on Iran's oil exports.

3. Affected by the economic crisis in Venezuela, the declining trend of Venezuela's crude oil production has not stopped. Some organizations predict that its crude oil export will drop to 400,000 / barrel by the end of the year.

4. Due to power failure, Canada's crude oil supply decreased by 360,000 barrels per day.

5. OPEC's plan to increase production and expand capacity cannot fill the "expected gap".

6. Like Russia, which is not OPEC, the oil production capacity of many countries has reached its limit.


International oil prices have soared, and China will also usher in the era of high oil prices.


For the operation of the national economy, high oil prices mean that the costs of various industries are pushed up. On the one hand, high oil prices have led to an increase in aviation kerosene, which in turn has led to an increase in air tickets. At the same time, due to the arrival of high oil prices, the prices of industrial raw materials such as plastics and rubber will rise further. On the other hand, the price of refined oil will drive other energy prices up.


Taken together, international oil prices have soared and remain high in the short to medium term, bringing pressure on China's economy to import inflation. In addition to the price increase of refined oil, the prices of other energy and raw materials will rise simultaneously, which will increase the travel cost for residents and the production cost for enterprises. On the contrary, the sharp drop in international oil prices will also reduce our travel and production costs.

However, we will make our own efforts to contribute to the steady development of China's economy.


Tianjin xinyue steel group always together with you!


Written by Tony

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