A Study On International Oil Pricing Mechanism

As an important source of energy and strategic commodities, oil is closely related with national economy, social development and national security. With rapid economic growth, the demand of oil in China is increasing rapidly. Domestic oil production lagging demand growth has been becoming an increasingly serious problem. In recent years, China has been substantially increased the degree of dependence on oil imports, its oil consumption in 2002 exceeded that of Japan, becoming the world's second largest oil consumer, just behind the United States, with 136 million tons of oil net imports in 2005,accounting for about 7% in world oil trade, but ratio of effect on international oil prices is still less than 0.1%. Deep study on the international oil pricing right will play an important theoretical and practical role in establishing reasonable Chinese energy strategy, ensuring the stability and rapid continuous growth of our economy.This paper makes theoretical and empirical analysis of the international oil pricing right respectively by using qualitative and quantitative method, getting the following conclusions: China should take full advantage of the long term and short term factors of international oil supply-demand and non-supply-demand, innovating mechanism and developing the futures market, enhancing the petroleum reserve, striving for the bid right of petroleum in utilizing the status of significant import country in the world in multiplex time of oil pricing right.The paper consists of four parts.Chapter one mainly introduces the background and significance. After summarizing the current study both home and abroad it presents innovation points and weakness points in this paper.Chapter two mainly analyzes the mechanism of international oil pricing right. First, analysis of the history and institutional changes in the international oil market is given regarding the international oil pricing right as main line, considering that western multinational oil companies master the oil pricing right ahead of 1973; and OPEC is the master of the oil pricing right in 1973-1986; since 1986, it is multiplex time of oil pricing right. Second, According to the theoretical analysis of the fluctuations of international oil price, the oil is a commodity, which price follows the laws of supply-demand and lack of both supply elasticity and demand elasticity in short term. Finally, current international price mechanisms of crude oil and finished oil market are...