Analysis On The Current Situation And Problems Of China 's Oil Market

Petroleum is a vital product of development of national economy and strategic resource. In petrochemical products, refined oil product is the most closely linked with daily life. Refined oil product is as special as petroleum and the market of refined oil product is the opener compare with other Petroleum products, and the competition in the market of refined oil product in China is fierce. At the same time, refined oil market connect with China’s transportation industry, car industry and economic development, it response to the development of industry of our country rapidly.With the development of China, the demand of refined oil product is increased, but because of the highly dependence of China petroleum, refined oil product is influenced by international situation and geopolitics, it fluctuations drastically. In the demand side, because of the change of the speed of the economy development in our country, the growth of refined oil product increased slowly.In this paper, it analysis the method of supply of refined oil product, and through the analysis of demand of refined oil product to predict the development trend of refined oil product market. There will be four characteristics in the future of refined oil product market.On the other hand, pricing of refined oil in China is unique, so the influence of international petroleum can affect the market of refined oil market in China in two ways.The reason of these problems of refined oil market is monopoly. Throughout the changes of China’s refined oil market, we can find that cause of China’s refined oil market monopoly is not only determined by the nature of oil is a special commodities, but also the development of Chinese economy. It can be conclude by the international petroleum industry’s development history such as "seven sisters". China’s refined oil market is opened constantly, but administrative monopoly is still exist today. In order to gain economies of scale and strengthen of the competitive power in the oil companies, the oligopoly should be existing. But administrative monopoly causes inefficient in Chinese oil companies. By comparing with international multinational oil companies, it is not hard to see China’s oil enterprise’s personnel costs are high and have lower production efficiency and lower level of production technology.Reforming China’s refined oil market and the development needs the cooperation of government and enterprises. Government is the manager of the current oil market, it should return the pricing power to the market, should return the management of enterprise to the enterprise itself. It should just play a role of supervision by perfecting the laws and regulations to guarantee the development of market. And it should promote market competition to counter the risk of international oil changing. As participants Chinese petroleum enterprise should no longer rely on administrative monopoly profits, improve the production efficiency, improve the level of enterprise production technology, lead the development of refined oil market.