Research On China's Oil Pricing Under The Current International Oil Pricing System

The paper explores the method way to build up a market-related pricing system in order to enhance Chinese pricing power under the current background through the research on international and domestic oil pricing mechanism.This paper starts sorting out the oil pricing theories and related literatures as well as the evolution of pricing system from the macro-and virtual perspective,and reaches the result that the genesis of current oil pricing system,the fundamentals of which are WTI and Brent futures contracts as the main oil price benchmarks,and the crude oil futures markets as pricing places.The pricing formula and model for oil spot and futures market are established on the basis of the pricing system.The qualitative method is applied to the research of main benchmark oil markets.The conclusion is concluded that physical liquidity,market transparency,and diversification of benchmark equity are the key characteristics for benchmark markets of pricing power.In the aspect of domestic oil pricing mechanism,the anatomy of pricing mechanism and the existing problems which attribute to the lack of Chinese pricing power are conducted by means of static comparative analysis.The research indicates that only the crude oil futures market is built up,can China increase its influence in oil pricing system.Therefore,the feasible opinions are proposed for the development of domestic mature futures market based on the common properties of the mentioned benchmark markets.