As crude prices surged above US$100 a barrel, the problem of inverted wholesale and retail prices of oil in China has become more acute and a shortage of refined oil has hit many places such as Guangdong Province, Chongqing and Henan Province. In the mean time, wholesale prices of crude oil in all parts of the country have also increased, threatening a nationwide shortage of refined oil, according to Shanghai Securities News.

The price of refined oil in China also rose last week under the influence of the soaring crude oil price on the international market, with diesel oil jumping by a large margin mainly in northern, eastern and southern areas of China. Active hoarding of oil is widespread in the country because of the rapid increase in oil prices and constant rumors of price adjustments.

For more details, please read the full story in Chinese (http://www.dfdaily.com/node2/node27/node119/userobject1ai62865.shtml).

(China.org.cn March 18, 2008)