Institutions: Mainland refining margins close to a reasonable level after oil price reduction

Xinhua Beijing, June 1, according to Radio Television Hong Kong, in response to the price of oil products lowered, the Bank of China issued a study, said the price reduction, the mainland oil refining industry due to the recent decline in international oil prices to obtain the excess profit significantly reduced, the average refining margin is close to a reasonable level.　　On June 1, the National Development and Reform Commission reduced the price of refined oil, and the price of gasoline and diesel was cut by 230 yuan and 220 yuan per ton respectively, and the price of aviation kerosene was reduced by 230 yuan per ton. The Bank of International Research report said that the oil price reduction is based on the recent sharp decline in international crude oil prices, has triggered the "petroleum price management measures" preset requirements. Since the beginning of the month, New York light oil prices from 87 U.S. dollars/barrels quickly fell to the lowest 67 USD/barrel, the 22-day moving average price of the oil price has also been reduced from 84.7 US dollars/barrel at the beginning of the month to the current 75 USD/barrel, which has already triggered more than 4% of the provisions in the Oil price management scheme　　The 22-day moving average price change can be a necessary condition for oil price adjustment. The report said that the current oil prices implied 68.4 U.S. dollars/barrel of crude oil costs. After the price reduction, the oil refining industry in the mainland has been greatly reduced by the recent decline in international oil prices, the average refining margin is close to a reasonable level.