The Research On The Impact Of International Oil Price Fluctuation On China's Oil Industry And The Countermeasures

As the world's second-largest oil consumer, China's dependency on foreign oil import has been more than 50%. The increasing dependency on foreign oil import will get the oil price fluctuation to exert a more prominent influence on domestic economy. And the influence is largely realized through the impact of the international oil price on domestic oil price, the first step of which is through the impact of the international oil price on domestic oil industry. Therefore, with the study of the impact of international oil price fluctuation on China's oil industry, we can further study the impact of oil price fluctuation on China's economy, and China's oil industry can make a positive adjustment to cope with the oil price fluctuation to enhance their ability to resist risks. This paper recalls the history of the oil price fluctuation, analyses the oil price volatility of the current situation, introduces domestic and international oil pricing mechanism and the factors in influencing the international oil prices volatility. After the introduction of the theory of oil price fluctuation, it analyses the impact of international oil price fluctuation on China's oil industry by using qualitative and quantitative analysis methods. In order to cope with the impact more effectively, the latter part of this paper introduces the experience of the multinational oil companies in dealing with international oil price volatility, puts forward many countermeasures and proposals which may help China's oil industry to seize the opportunity and avoid the adverse effects in the oil price fluctuation.