Affected by the positive economic data in China and the progress in negotiations over the U.S. “fiscal cliff”, the international oil prices continued to rise this week and Brent oil prices showed a shaky upward trend. By the close of business on the 20th of December, the price of WTI crude oil futures closed at US$90.13 a barrel, up 4.89% over the same period last week. London Brent crude oil futures prices closed at US$110.20 a barrel, down 0.14%.

As of the 20th of December, the average change of oil prices in three locations was -0.42%. According to the rolling estimation based on the latest crude oil spot prices, the rate of changes at the three locations will continue to maintain a negative run; the domestic refined oil prices adjustment is no longer possible within the year.

Zhang Ping, Chairman of the National Development and Reform Commission, told the National Development and Reform Working Meeting on the 18th of December to steadily push forward price reform focusing on resource products next year and to improve the oil price formation mechanism. The new mechanism is expected to be introduced at the same time as the domestic refined oil prices are adjusted downwards for the first time next year.

Data from the Xinhua News Agency showed that crude oil inventories in late November (excluding reserve inventory) decreased 1% from the previous month, gasoline, diesel and kerosene inventories were up 4.13%. Inventories of gasoline, diesel and kerosene rose by 6.97%, 1.93% and 3.4% respectively.

The Ministry of Land and Resources has recently announced the tender results of the second round of shale gas exploration rights. Jiangxi Xiuwu Basin shale gas block was won by the cooperative partner of Jiangxi Bureau of Coal Geology, Jiangxi Natural Gas Holdings Limited. This is the first shale gas resource exploration project in Jiangxi Province. The first phase of the exploration design and construction project will bear 11 holes, with an investment of 430 million yuan in exploration funding.