International Oil Price Mechanism

As one of world the most important strategic resources, oil has become the life line of state economy, the safe safeguard, relates to the national economical development, politic tranquilization and the nation security directly. Along with our country economy rise in high speed, the oil demand increases rapidly, the supply-demand contradictory reveals prominently. In recent years, our country oil import degree enhanced largely, in 2004 our country crude oil import broke through 100 million tons, became the global second oil expense country only inferior to US and the world third oil import country inferior to America and Japan. As the oil expend and import great nation, our country will be affected inevitably by the international oil market intense shaking, specially the oil price change, they play an important pole to our country national economy and social enterprise development. Therefore, further analyses and research international oil price mechanism, analyses the factors of influencing international oil price, have the certain reality guiding sense to consummate our country oil price mechanism.This paper makes the international oil price mechanism as a start point, from the decision mechanism, formation mechanism, fluctuation mechanism, regulatory mechanism comprehensively. Analysis of the world oil reserves, production capacity, production costs, the growth of the world economy, alternative products from both the supply and demand deeply; used the approach of theoretical analysis and empirical analysis of the combined proved development of the world economy and international oil prices are highly relevant; introduced short-term impact of socio-political factors ,speculative factors, U.S. dollar exchange rate to international oil prices.Finally, the paper introduces our country current oil pricing mechanism, finds out gaps and put forward approach and recommendations to perfect the country's oil pricing, makes this study have a systematic and scientific.