China set to hike Base Oil prices
China's two main oil producers announced base oil price hikes with effect from the beginning of May.
China National Petroleum Corporation (CNPC), PetroChina's parent company, announced a 200-300 yuan ($29-44)/metric tonne increase in its base oil prices, whilst Sinopec pushed its prices up by between 370-600 yan ($54-88). Refinery prices of the two giants' affiliated plants will also rise accordingly.
The price increases are apparently due to a number of factors, including rises from other major producers including Exxon Mobil, short supply of feedstocks, a rise in Chinese product oil, and a more bullish oil market. This is the fourth price alteration by Sinopec so far this year, including once already in April, with CNPC adjusting its prices twice this year.
Published 5th May, 2010
