Domestic oil prices rise the potential to benefit the chemical industry - oil, chemicals - plastics

Published: 01st March 2011
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HC plastic mesh News: 13 evening, the National Development and Reform Commission notice, since starting at 0:00 on the 14th will be gasoline and diesel prices were increased 320 yuan per ton, calculated to the retail price of 90 # gasoline and 0 # diesel oil will be increased by 0.24 yuan per liter and 0.27 yuan . Overall, the price rises and the market had expected little difference. Analysts said that as the price adjustment is more limited, and therefore the impact on related industries or good high side.

Direct positive Oil Industry Recent international oil prices higher, NYMEX crude oil futures prices rose to around 85 dollars. According to "22 days +4%" of the price adjustment mechanism, the domestic refined oil prices has clearly raised in a window. Based on domestic crude oil prices into line with international market fundamentals, the basic change in the cost of the case, oil product prices will directly profit. From this perspective, the price increase on oil company performance and stock price performance of the supporting role of the formation of the absolute.


On PetroChina and Sinopec, the oil extraction and refining its asset structure of the different, so its real impact of price adjustment is also very different. Some analysts pointed out that more than 85% crude oil can be self-sufficient, cost benefits in addition to the special payment will increase because of higher crude oil prices, the other mostly locked, so the price increases generated by oil revenues, the majority will be the company's profits. But Sinopec, while the rise after oil prices is greater than the revenue generated by oil, but very much part of the revenue going to offset rising oil prices caused by rising costs, it is difficult to generate real profits, only can reduce the loss of the magnitude of the improvement of its performance is not significantly affected.

Chemical Potential benefit industry Although oil prices and improve performance between the chemical companies did not necessarily follow. However, according to laws of history, higher oil prices on the one hand make oil refining, petrochemical business costs, but it also often makes the refined oil and petrochemical products and oil formation spreads have widened, from this perspective, the cost of the chemical industry shift are strong, so oil prices will Sinopec, Shanghai Petrochemical and other chemical class of company stock a certain stimulus.


Pay big run industry does not adversely impact
For Transportation Industry, transport oil prices will inevitably have a negative impact class enterprise performance. Among them, the first to be affected is air, followed by Car And road class enterprise.

Currently, fuel costs accounted for 30% of airline costs; the same time, fierce competition between airlines, fuel costs, airlines are able to successfully pass on the passengers, still a question mark. Analysts believe that once oil prices remain high, the airline's performance and stock price will certainly varying degrees of pressure. But in view of the second half of this year's World Expo and Guangzhou Asian Games held in the whole aviation sector in this context by increasing the cost of the fuel surcharge passed on the possibility of relatively large, thus, long term, its aviation the negative effects of shares is limited.

Oil prices affect the performance of the automotive industry, relatively more indirect. As we all know, when the international crude oil prices remain high for long, the domestic refined oil prices rose to end at a certain height, which will significantly increase the cost of car ownership, which, when rising oil prices or the expected form, the price of oil will consumers are buying cars an important consideration. Especially in the highly competitive Chinese car market, high oil prices will become a significant impediment auto demand. According to data from the automotive industry in March, in fact, car sales have been "name" l "solid" down, boom of the industry has begun to slow down from a high level, from this point of view, the rise in oil prices, type of vehicle production enterprises certainly will be a certain hit.



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