PetroChina Fall After Government Creates $40 Oil Floor

At the beginning of 2016, Bloomberg posted an article describing how one of China’s biggest refiners fell after a policy that would not let fuel prices fall in line with crude prices below $40/barrel. This caused Asia’s biggest refiner, Sinopec to fall 4.9%. The price of fuels won’t be adjusted as long as crude is under $40 a barrel and the profits from fuels sales below the $40 level will go to a fund to promote energy conservation and security, while also improving fuel quality. The reason for this price floor was to help lower vehicle pollution.

1 Comment »

  1. Nicky Tynan Said,

    November 2, 2016 @ 12:25 pm

    Note that it is the stock price of the company that fell, meaning that markets were predicting lower profits than previously.

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