Compared with the era of high oil prices that used to cost US$100 a barrel, the international oil price of US$40 to US$40 per barrel since 2015 has caused a significant drop in China’s crude oil import costs.

In the first half of the year, the average price of China's crude oil imports fell by more than 45%
In the first half of the year, the average price of China's crude oil imports fell by more than 45%

According to the import data of the General Administration of Customs, China imported 1.6337 trillion tons of crude oil in the first half of this year, an increase of 7.49% year-on-year; crude oil imports amounted to 177.09 billion yuan, a decrease of 41.72% year-on-year.

Judging from the unit price of imports, the unit price of crude oil imported from China in the first half of this year was approximately 2599.2 yuan per ton, while the unit price of imports during the same period last year was approximately 4794.2 yuan, a year-on-year decrease of 45.8%. Among them, the crude oil import volume in June was 29.49 million tons, the import amount was 81.73 billion yuan, and the import unit price was about 2771.5 yuan per ton.

It is precisely because of the international oil price that has benefited almost from the waistline. Since the beginning of this year, the cost of raw materials for oil companies, which account for a large proportion of the refining sector, has been significantly reduced.

It is worth noting that in the first quarter of this year, due to factors such as the incomplete inventory of high-cost crude oil, the net profits of PetroChina and Sinopec declined by more than 80% year-on-year. However, after entering the second quarter, high-cost inventories were basically exhausted. International oil prices remained at a relatively low level, and refining companies ushered in the golden period of development.

Sinopec, the country’s largest oil refining and chemical sales company, recently released its second-quarter earnings forecast and stated that it expects net profit attributable to shareholders of listed companies in the second quarter of 2015 to increase by more than 1000% from the first quarter.

According to experts, international oil prices are still expected to maintain low oil prices in the second half of the year. This means that the market environment for refineries is still optimistic.

Experts believe that the fundamental factor in the current suppression of international oil prices is still the enormous pressure of oversupply.

On the demand side, the latest report issued by the International Energy Agency predicts that the global crude oil demand in 2015 will be 1.39 million barrels per day, and in 2016 it will be reduced to 1.2 million barrels.

On the supply side, in November last year and June this year, OPEC, the world’s largest oil exporter, announced its decision not to cut production. This makes the global crude oil market oversupply expectations have not slowed down.

Although the current international oil price is almost fluctuating compared with the same period of last year, the IEA still believes that oil prices need to further decline in order to squeeze out excess capacity. The adjustment of the crude oil market is not yet over or will continue until 2016.

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Leather Care

The fundamental reason why leather is soft is that when leather is made, oil is introduced into the interior of animal skin to form an oil film that completely covers the surface of the fibers inside the skin, that is, a layer of oil film with appropriate thickness is used to separate the surface of the fibers inside the skin. In this way, the friction between the fibers inside the leather is equivalent to the friction of the oil molecules, so the leather will be very soft. Its principle is similar to that of sponge, but the difference is that the inner surface fibers of dermis are separated by oil film, which makes the inner surface of dermis have sliding pores, but its pores are smaller than that of sponge, and the distribution of the inner surface fibers of dermis is not as regular as that of sponge.

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