“Oil anger” hard to shake the pattern of oil prices unrealistically high
Lu Ning
But for Sinopec, “authority” suddenly stand up and oil prices pose a public statement, on June 30 after a further rise in oil prices the “real name up down” the strange phenomenon, also limited to news coverage, it is difficult to comment on a wide spread to the news. Which we want to force you must first tree as a target for comment pretext. Goes on anachronistic “bill”, just as the latest wave of press comment areas under the “oil price anger” of the fuse.
Unrealistically high oil prices, the largest manufacturing and transport injury in the immediate recovery of the overall macroeconomic impact (including costs and psychological expectations), but also disrupt the rhythm of economic operation. Followed by the interests of the impaired relative, Department of private owners. Logically speaking, the largest oil prices unrealistically high number of damaged group most likely to lead to “price rage” and also the most activist impulses.
A bit unreasonable that every time oil prices rise, or half beat slow down oil prices, companies generally submissive, never seen Which companies volunteered to act as “oil Anger” stands out. Increasingly large groups of private owners, few people come out openly express their “outrage.”
On the contrary, each expression “oil price anger”, always circle the main fight commentary. This group also has a small “business voice” and private car owners, but most people are not. There is no doubt, “to speak for the weak,” Department of citizens at this stage the main form of expression, but from another perspective —- specifically to the “oil price anger”, was rather “the emperor is not urgent urgent eunuchs,” the mean. “Emperor” is not urgent and not much higher awareness activist stakeholders, on the contrary, the smartest of the group, not worthwhile to solve the oil price unrealistically high labor La Tortura find their own heart is not happy.
News unrealistically high oil prices a decade ago, the author repeatedly denounced the author of several links point are monopolies, price controls and huge profits. Process, domestic oil supply structure, investment and financing, business properties, the oil price means of regulation are changing. I also changed the past few years to write the same article an objective, calm, pragmatic lot.
Combination of the two raised oil prices in June and now “price rage”, saying the supply structure changes. There are a small amount of oil self-sufficiency early exit, this import from the mining and half of each. Since oil and imported oil prices are different, the latter than the former, since the adoption of the government controlled prices, which have to follow the market. To the refinery, the cost of two different blend of crude oil a government is difficult to accurately monitor the actual costs of refining. This is the result of an unrealistically high price of oil causes.
Besides investment and financing of the change. In the past, the main financial funding, this mainly depends on corporate profits and market financing. Each of the two news giants as “the most profitable company in Asia,” the voice of the profits collected on the waves of the release of the Treasury. The problem is, changing the financial allocation for the “residual profit” appropriate department in 1984, “economic reform” starting origin. Return to its historic home not the way! Taking into account the expansion of the oil gap, the state encouraged the two giants overseas expansion, the necessary financial commitment by the huge amounts of money simply can not do all. —- I was after years of observation, unrealistically high oil prices in the two giants does imply to help finance factors.
Said property of enterprise change. Today, the pure evil of attacking two giant monopolies and with the fact that much there are some out. Early years, the oil monopoly is also part of the administration of natural or caused by the planned economic system. Administrative components of today’s oil monopoly due to changes in the diminished —- capital markets. The two giants control a large share, though still owned by the state, but as an international listed company, after all equity diversified its business activities to some extent have been affected by market rules. The fact that the starting point for this argument, it at least two points when the discernment: two giant special support by the state, still with a fineness of administrative monopoly, but the main body into the color market plus international listed companies. Both are listed companies, have to be responsible for all shareholders, so whenever the international oil price volatility that, in the two giants of the refining sector, the state had to subsidize their (country which is also reflected in the national interest).
Then the change of price control measures. Oil prices earlier return the “visible hand” the final say, the two giants went on the market, the “invisible hand” of a certain right to speak. Facts that do not bother Development and Reform Commission’s “price control mechanism,” it works, after all, oil prices in recent years “hands” joint adjustment form. In addition, today the West such as the United States, oil is not entirely “free price”, the government often for administrative intervention, the difference is only in the people through the delivery of crude oil strategic reserve for indirect intervention. China has also set up strategic crude oil reserve, but the ability to form stabilize oil prices, it takes time to ten years or more. Development and Reform Commission on June 2 capital increase oil prices led to extremely embarrassed, not primarily the adjustment should not, but the timing inappropriate.
In addition, the two giants to invest heavily mistakes, waste and extravagance, labor, management, financial costs are too high and other factors, no doubt unrealistically high price of oil is a secondary factor. After combing the above,
“Oil anger” unrealistically high price of oil is difficult to shake the pattern of argument has been able to set up. The Development and Reform Commission convened media briefing yesterday to calm “oil angry”, I thought no need, the price confused things would become clearer at this stage ha.