China may cut oil price on crude retreat

Another window for adjusting down China's retail prices for gasoline and diesel will open on Monday, after global crude prices fell over the past week, analysts said.

Both gasoline and diesel retail prices are likely to be cut by no more than 200 yuan (32.5 U.S. dollars) per tonne, according to a report released Sunday based on data from Xinhua's oil price monitoring system.

The report said the global crude supply remained sufficient since oil exports in Ukraine and the Middle East were not affected by regional tensions, but the demand for crude weakened due to slower economic growth across the globe.

China adopted a pricing regime last year that adjusts the domestic fuel prices when international crude prices change by more than 50 yuan per tonne for 10 working days.

Since July, authorities have skipped two rounds of price adjustment window. The top economic planner cut retail price of gasoline by 245 yuan per tonne and that of diesel by 235 yuan on July 22, the biggest cuts so far in 2014.