Friday, November 4, 2011

Sinopec, PetroChina Rise on Speculation Government to Change Fuel Pricing

China Petroleum and Chemical Corp., Asia’s biggest refiner, rose the most in almost three years in Hong Kong trading on speculation the state may allow fuel suppliers including PetroChina Co. to adjust prices on their own.

Sinopec, as China Petroleum is known, gained 8.3 percent, the largest increase since Dec. 8, 2008, to HK$7.92 at the close. PetroChina climbed 3.9 percent, while Cnooc Ltd. (883), whose parent operates a refinery, advanced 5.1 percent. The benchmark Hang Seng Index climbed 3.1 percent.

China, which controls fuel prices to curb inflation, may permit refiners to make “appropriate” changes, China Securities Journal reported, citing an unidentified person. This would mark a further move toward market oriented pricing after China introduced a system in 2008 that linked government mandated changes to swings in benchmark crude prices.....Read the entire Bloomberg article.

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