March domestic refined oil trend or continue to improve
Entering March, the trend of domestic refined oil products and what expectations will be in the future have become the focus of the industry.
"On the whole, the diesel market is expected to be optimistic in March. It is recommended that the industry maintain a high level of inventory, gasoline gains are limited, and the pace of purchases is stable." Jinlianchuang refined oil analyst Xu Peng told reporters.
"In February, the domestic gasoline and diesel market rebounded strongly after a brief decline, and the trading atmosphere turned warmer. Specifically, the first ten days coincided with the Spring Festival. During the festival, crude oil was weak and the price of refining was also adjusted back. In addition, the sales cycle in February was shortened. After the festival, the main shipping mentality was positive and the prices were continuously reduced. However, the festival atmosphere did not disappear and the trading was very light. As crude oil stopped falling and rebounded and continued to rise, the first round of retail prices within the month was raised, and the new round of change rate was running in a wide range. The positive news continued to deepen, boosting the number of operators entering the market. Some main businesses completed their sales tasks ahead of schedule, and the price of gasoline and diesel maintained a steady upward trend. In particular, people in the industry are bullish on the demand for diesel in March, so the purchase volume increases, the diesel transaction atmosphere is better, and the price increase is significantly greater than that of gasoline." Xu Peng explained.
Data show that as of the end of February, the No. 92 gasoline index was 7207, up 59 from the previous month, or 0.83 percent; the No. 95 gasoline index was 7577, up 87 from the previous month, or 1.16 percent. The No. 0 diesel index was 6354, up 209 from the previous month, up 3.40 percent.
According to Xu Peng, the planned maintenance of domestic main refineries increased in March, and the supply of resources decreased slightly. At the same time, the start-up of production units at local refineries also declined.
Overall, the supply of gasoline and diesel resources in the market shrinks.
On the demand side, both industrial and agricultural oil consumption increased in the spring, driving the demand for diesel to continue to rise, and the performance of gasoline was relatively flat. "With the national temperature obviously warming up, the terminal industrial and mining, infrastructure and other oil units to start to increase efforts, industrial fuel consumption speed significantly accelerated, in addition, March into the spring farming season, agricultural oil demand is strong, the overall drive diesel just need to increase. Gasoline, March no holidays and other positive factors, gasoline demand is more general." Xu Peng said frankly. (From China Energy Network)