Published 05th May, 2010
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.