China's Oil Market Pricing Mechanism Reform Study

As the world's most important energy resources for economic development, the petroleum is related to national economic development and national economic security of the strategic resource. China is a big oil-consuming country, in recent years the high frequency fluctuations in international oil prices had a great impact on China's economic development, it is great significance to establish a rational pricing mechanism of oil. Currently China's oil pricing mechanism over a long period of reform and development, has achieved the initial integration with the international market, and achieved some success, but there are still some drawbacks, such as lag changes in oil prices, low efficiency caused by the pattern of the oil market, lack the right to speak in the international oil prices and so on. Therefore, improve China's oil pricing mechanism and reform China's oil market is the inevitable choice to promote the development of the oil industry, effectively resist the energy risk and protect China's oil security and national stability.First this paper analyzes the factors of the formation and fluctuations in oil prices, pointed out that as a special commodity, the formation of oil prices is not only affected by supply and demand, costs, monopoly profits, but also by geopolitics, stock, the dollar exchange rate and abnormal climatic factors. Then use SCP Paradigm Analysis to grasp on China's oil market structure, market conduct and market performance as a whole, and collect various data to analyse the characteristics of the oil industry organization, combine qualitative and quantitative analysis make the result of the analysis more accurate. Based on price theory and oil industrial organization, analyse China's oil pricing mechanism and problems. At last, through the analysis of the problem and combined with China's actual conditions, proposed two major recommendations: the introduction of competition, promote market-oriented process and the government's macroeconomic regulation and control.