China Price Increase A Non-IssueFirst and foremost, if you haven't seen a price increase in 9 months (when oil was at $60/bbl) to pay 18% more off that small base is nothing. It will not affect any purchase decision.
China is virtually rationing fuel in many parts of the country. The refiners have not been producing at capacity because the price freeze directly hurts them (they are losing money on refining becasue the Gov't needs them to take losses - they still make gobs on E&P).
This price increase will allow the Gov't to reduce subsidies and refiners to make a better margin. They will actually produce more to feed tight markets.
Consumption will actually increase!!!
Sell-off in oil unjustifiable!