Affected by favorable economic data, the U.S. crude oil inventory change, the reduction in Arab oil production and other factors, the international oil prices showed a volatile trend this week. As at the close of business on the 10th of January, the price of New York crude oil futures closed at US$ 93.82 a barrel, up 0.97% over the same period last week; London Brent futures price closed at US$ 111.9 a barrel, down 0.18% over the same period last week.

The whole of the Second West-to-East Gas Transmission Pipeline was commission for production on the 30th of December, 2012, forming a natural gas pipeline network of nearly 40,000 kilometers in China, basically covering 28 provinces, autonomous regions and municipalities in China and Hong Kong Special Administrative Region. The total investment in the Second West-to-East Gas line project amounted to 142.2 billion yuan, with a designed annual gas transmission capacity of 30 billion cubic meters for more than 30 years of stable gas supply.

Some regions of China have entered a peak period of gas consumption since the winter, with rapid and sharp rises in the demand for natural gas resulting in successive gas supply shortages in parts of China. Analysts believe the causes of natural gas shortage include the lack of resources, climate and seasonal reasons, as well as the acceleration in the transition of downstream users switching from oil to gas, which is also a big problem.

The 2013 National Energy Work Conference was held in Beijing on the 7th of January. The conference stressed the need to vigorously develop shale gas, coal-bed methane and other unconventional oil and gas resources. The second round of the shale gas prospecting and tender results has been publicized, successful enterprises and the Ministry of Land and Resources will be signing agreements formally while the relevant departments will also continue to release supportive policies to aid the development of shale gas.

According to data from China's General Administration of Customs, China's crude oil imports in 2012 totaled 270 million tons, representing an increase of 6.8% over 2011.