Impact Of Crude Oil Price Fluctuation On Petrochemical Industry

Oil is the world's primary energy,and oil prices affect the prices of various commodities,The international oil price fluctuate fiercely since the 2008 economic crisis,drop from 140 U.S.dollars per barrel to less than 40 U.S.dollars per barrel within five months.The world economy has been seriously affected this fluctuation and the real economy has been influenced.As the world's second largest oil-importing countries, China consumes hugely.So the fluctuations in oil prices has more or less influenced every industry.As a downstream industry,China's petrochemical industry has been particularly affected.Research on the conclusion of previous studies,this paper base on the theory of demand and supply,financial derivatives,business cycle theory,it explain the causes of fluctuations on crude oil price and make a detailed analysis of the crude oil price fluctuations on the impact of petrochemical industry by using input and output theory, including operating costs,profitability,management model,long-term development of enterprises,as well as several aspects of the external business environment.Finally, according to the causes of oil price volatility and the impact of China's petrochemical industry,the paper make some countermeasures and suggestions:strengthen domestic exploration;develop foreign markets;reduce the risk of imported crude oil business; develop new energy sources;improve resource utilization.