Gas prices rise amid rising geopolitical tensions

Shanghai will lift retail prices of gasoline and diesel from tomorrow in line with a surge in global crude driven by rising geopolitics conflicts despite expanding supply in the United States.

The ceiling price for 92-octane gasoline will be 6.89 yuan (US$1.10) per liter, up from 6.85 yuan; a liter of 95-octane gasoline will sell at 7.33 yuan, rising from 7.28 yuan; and diesel will be 6.52 yuan per liter, up from 6.48 yuan, announced the Shanghai Development and Reform Commission just now.

The measure will take effect from midnight today, thus filling a private car with a 50 liter tank with 92-octane gasoline will cost about 2 yuan more from tomorrow.

The rise came after a surge in global crude, with China adjusting retailing prices of refined oil products every 10 working days following crude fluctuations.

The benchmark Brent Crude soared 7.4 percent to US$72.06 – a three-year high – on April 11 from April 6, following rising geopolitics conflicts after US president Trump tweeted that he would fire missiles at Syria in react to a suspected chemical weapons attack.

Although crude inventories have gained 3.3 million barrels in the week ended April 6 amid US production expansion, “the rising geopolitical tensions will put crude prices higher in the short term,” said Li Yan, crude analyst at oilchem.net, a domestic petrochemical consultancy.

The next oil price adjustment will come on April 26.