Affected by factors like demand worries, the decrease in U.S. crude oil inventories last week, as well as the Algeria hostage incident, international oil prices this week was in a shaky upward trend. As of the close of business on the 17th of January, the New York oil prices closed at US$ 95.49 a barrel, up 1.81% over the same period last week, which is the highest level since the 18th of September, 2012. Brent oil prices closed at US$ 111.10 a barrel, a slight decrease of 0.71% over the same period last week.

As of the 17th of January, the average price change in crude oil at three locations was 0.36%. Industry analysts believe that in the short term the possibility of significant price increase is very slim, leaving hardly any window for price increase before the Spring Festival.

The International Energy Agency said that the average global oil price in 2012 was US$112 / barrel, making it the highest annual average price on record. Oil demand will continue to grow thanks to India, China and the Middle East, and sustained high oil prices will continue to pose a risk to the global economy.

Northern China is experiencing harsh cold weather at the moment; demand for diesel in the north remains low, causing the average wholesale price for refined oil continue to stay low. In South China, the wholesale price for refined oil is in the process of steady decline, but the consumption is strong, increasing the gap between wholesale and retail prices.

In recent days, a number of cities in China are plagued by the haze. According to monitoring data, motor vehicle exhaust is one of the important sources of the PM2.5. The upgrade in China's oil quality is still lagging behind, the sulfur content remains high in the oil, thereby increasing the degree of contamination of the vehicle exhaust emissions. China should draw on the experience of developed countries and share the cost of oil quality upgrade among multiple parties, creating a new balance between environmental protection and the protection of people's livelihood.