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Thread: How long will the oil price last?

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[quote=ICEBERG,247828]In recent days, the oil price in international market keeps soaring. Each bucket reaches 83 US dollars. It is estimated that the oil price might exceed 90 US dollars before the end of this year.

Confronted with this situation, the NDRC has ordered before that oil price in domestic market should be kept stable. Why? Because the CPI increased 6.5% in August. To resist the huge risk of inflation, China chooses to stabilize the oil price. This act went against the 'market law'. However, they have to do this. An analyst said that the oil price had been raised if the CPI was normal.

In order to stabilize the oil price, the two giant---Sinopec and CNPC need to buy the oil at high price in the international market and then sell it at lower price in domestic market. Without government's compensation, they will suffer a huge loss.

To raise the oil price or not is still question. Chinese government has to weith its pros and cons. But how long can this policy maintain?[/quote]

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