Policy factors: The Chinese government regulates oil prices through tax policies and oil price regulation funds.

For example, when international oil prices fall, the Chinese government may increase the proportion of petroleum resource taxes to supplement national fiscal revenue.

When international oil prices rise, the government can use the oil price adjustment fund to curb the rise in domestic oil prices.

In addition, the government will take social stability and national energy security into consideration when formulating oil price policies.

Market factors: The supply and demand relationship in the domestic market is also an important factor affecting China's oil prices.

For example, early in the outbreak in China, oil prices fell as demand fell due to transportation restrictions and slowing economic activity.

Oil prices are starting to rise as demand increases as economic recovery and vaccination campaigns progress.

Exchange rate factors: The RMB exchange rate will also affect China's oil prices.

When the RMB appreciates, it can purchase more international currency to purchase crude oil, which will cause China's oil prices to fall; when the RMB depreciates, the cost of purchasing crude oil will rise, which will cause China's oil prices to rise.

International political factors: International political factors will also affect international oil prices and Chinese oil prices.

For example, if the international situation becomes tense, international crude oil supply may be affected, causing oil prices to rise.

If international relations ease, oil supplies may stabilize and prices may fall.

The relationship between Chinese oil prices and international oil prices is affected by many factors.

Although international oil prices are an important factor, the Chinese government's oil price policies, domestic market supply and demand, exchange rates, and international political factors all have an impact on China's oil prices.

Who are China's three major oil companies?

1. PetroChina, China National Petroleum Corporation is a large enterprise whose main business objects are oil, natural gas, petroleum, chemicals and petroleum products.

2. CNOOC, CNOOC is China’s major offshore oil and natural gas production company.

3. Sinopec Corporation, Sinopec Group is a very large petroleum and petrochemical enterprise established by Sinopec Group Corporation in July 1998.