Inland oil steady on winter use, tight supply

Wholesale diesel prices in western China are holding steady below October's peak, supported by rising winter heating demands and tight supplies.

A crackdown by Beijing to enforce government price limits in the retail sector brought down wholesale rates to 4,080-4,150 yuan per ton, or around 493-501 US dollars, in the region's consuming hub Chengdu, capital of Sichuan province.

Prices rose above the administered retail ceiling in late October to near 4,200 yuan amid speculative stockpiling.

Officials said suppliers in west China, which run a surplus of refined oil products, had been feeding more oil in recent weeks to central and eastern regions to supply transportation, construction and power generation.

Key inland consuming areas such as Sichuan and Chongqing also use more diesel and fuel oil to heat offices, hotels and restaurants during the November-February period.

Source: CRIENGLISH.com