The Analysis Of The Problem Of Chinese Petrol Price

Along with the high - speed development of national economy, the dependence on international oil market is increasing. The balance of supply and demand of petroleum becomes a serious problem in China. And the price is the key problem. Therefore, we present several recommendations and projects for solving the contradiction between supply and demand of petroleum in China correspondingly based on constructing several dynamic models of oil production and consummation. The author suggests that we should enhance the efficiency of oil utilization, use clean energy as much as possible and import petroleum by engaging in resources-oriented diplomacy, for ensuring the petroleum security in China.The price is enterprise's most important market behavior. This paper used methods of econometrical analysis and empirical study to perform a thorough Study on this topic. This work mainly include: (1) Study how the price fluctuation affect the Chinese economical grows and predict the petrol production and comsumption quantity. (2)Give an econometrical model for the pricing of international crude oil was established, imposing the principle of import-export-gross-equilibrium in a dummy international oil market (2) Analyze the interact between domestic and intenrationalcrude oil price wasinvestigated, applying the co-integrating technique and Granger causality test.Results show that the crude oil price in China is approximately proportionate to the international counterpart. In the short term, the crude oil price in China will not afect the international one.This conclusions how crude oil price in China is passively tracking the international price.(3) Study the price mechanism of oil and give suggestion to the market.