Affected by uncertainty factors like the Italian parliamentary election, the international oil prices this week were in a downward trend, bringing the New York oil prices to the lowest value since December 31, 2012. As of the close of business on the 1st of March, the New York oil prices closed at U.S.$ 90.68 per barrel, down 2.6% over the same period last week; London Brent oil closed at U.S.$ 110.46 per barrel, down by 3.2 % over the same period last week.

The National Development and Reform Commission announced this week that the price of domestic oil products is to be increased from 0:00 on the 25th. Gasoline is to rise by 300 yuan per ton, diesel to go up by 290 yuan per ton; equating to 0.22 yuan per liter for No. 90 gasoline and 0.25 yuan per liter for No. 0 diesel.
After the current price increase, the rate of oil price change in the three locations starts a new round of computing cycle. However, this lag in price adjustment again caused the industry to argue the current price adjustment mechanism. With the end of the international oil prices soar, domestic prices are at a relatively low level. A new price adjustment mechanism is expected to be introduced after the "two sessions" of NPC and CPPCC.

The NDRC data show that crude oil production in January amounted to 17.7 million tons, an increase of 3.6%; crude oil processing stood at 38.13 million tons, an increase of 5.3%; refined oil production totaled 23.52 million tons, up 5.9%; apparent refined oil consumption was 20.48 million tons, an increase of 5.7%. Gasoline grew by 2.6%, and diesel by 7.1%.

In January, domestic natural gas production amounted to 11.2 billion cubic meters, up 14.4%; imports of natural gas (including LNG) totaled 4.8 billion cubic meters, an increase of 42.2%; apparent consumption was 16.4 billion cubic meters, up 20.0%.

CNOOC announced on the 26th of February the completion of the acquisition of Canada Nixon transactions. As a wholly owned subsidiary of CNOOC, the new Nixon Board of Directors of the Company will be CNOOC, Nixon and Canadian independent directors; and the chairman of the board of directors will be the CEO of CNOOC, Li Fanrong.