The Impact Of International Oil Pricing Mechanism For Oil Market Reform In China

Oil is the important support resource for both economic and social development of human civilization and modern society. Global distribution of oil resources in all countries is not balanced and unbalanced economic development led to oil supply and demand contradiction. Since the new century so far, international crude oil prices fluctuated wildly, from January 2007 less than $50/barrel, to July 2008 soared to almost $150/barrel, by the financial crisis, oil prices fell in December 2008 $40/barrel. With the national economy improves, oil prices climbing higher and higher, in March 2011 the New York Exchange, crude oil prices close to $120/ barrel, and accompanied by a stronger dollar and other factors, global Bulk Stock prices fall, on 5th of May the New York Stock Exchange crude oil prices fell below $100 /barrel. In the past 10 years, the crude oil price has experienced ups and downs twice; it caused a huge influence on China’s oil security and economic securityThe article is based on the international crude oil price history and profound analysis, which is also analysis of international crude oil prices in different historical time periods different pricing mechanisms. Oil prices use to be controlled by monopoly in western countries. After oil crisis, OPEC became the price maker. In the 1990s pricing mechanism transformed into reference to international benchmark oil futures market pricing. Futures and other derivatives has accelerated the rapid development of capital markets on the oil market speculation, but also pushed up the crude oil prices. The current oil futures market to the international oil market pricing mechanism had a significant impact.China is relatively poor in oil resources, China’s proven oil reserves in 2009 is only 1.1% of the world. However, in China’s large population base and the period of rapid economic growth, huge demand for oil, the oil shortage is getting worse. 2009, China surpassed Japan to become the second largest oil importing countries, dependence on foreign oil more than 50%, the shortage of oil resources has become a major constraint on China’s economic development reasons, China urgently needs to accelerate the construction of a modern oil market system to improve oil shortages and fluctuating oil market.Modern oil market system includes oil spot market and futures market. Spot market is mainly trading commodities, futures market is the international oil market innovation and development of products, market updates variety of transactions, it retains the price discovery, hedging the risk function. Establishment of the oil futures market can be effective reflection of supply and demand of oil prices, the formation of a real Chinese price, thus affecting the global oil market. Participate in the international market of oil products pricing system, completely changes the oil consumption in China is serious and oil pricing away from the situation, establishes China’s oil pricing center, ensures China’s economic security and stability.