Featured Articles
Healthy Instructions For Pet Dog Care
Dog care tips: Depending upon the breed and the climate, a lot of things are there which needs to be done when it come to your pet dogs. Let it be the grooming, potty training or anything that is related to your dog, you must need appropriate guidelines to help you to do it successfully. For more [...]
Bar Or Liquid Soap?
In this day and age, I cannot believe that bar soaps still exist. Today’s society has already determined that the world is not how it were when we were kids. The new germs and bacteria that exist out there are plenty and super harmful to not only our little ones but to all and bar [...]
; ?>
 |
|
|
Discover just how some people are making big money on the Internet so easily it's almost untrue.Bookmark Us !
Fuel move boosts Chinese shares |
 |
 |
 |
Chinese shares have closed 3% higher after the government raised energy prices in an effort to cool the nation's rising energy consumption.
The Shanghai Composite Index initially fell 2% in early trade but bounced back to close 3% up at 2.917.33. China increased retail and wholesale prices for fuel and electricity by as much as 18% on Thursday, pushing global oil prices down by almost $5 a barrel. But analysts fear the move may fuel inflation which is near a 12-year high. The main beneficiaries of Beijing's energy price hike are the nation's oil refiners. As energy prices rise, refiners have suffered deep losses as they buy oil on the international markets but sell to consumers at a discount set by the Chinese government. The move will not only close the gap between state-set domestic prices and world oil markets but somewhat curb China's demand for oil, analysts said. China accounts for around 40% of the increase in world oil consumption, as its red-hot economy continues to expand at a furious pace. "It is going to eat into demand. I'm pretty sure of that," said Dave Ernsberger, Asia director of global energy for research firm Platts. State price controls in the world's second largest oil consumer after the US have also been blamed for making global markets more volatile. But there are also concerns that higher fuel prices may fuel inflation and spark civil unrest. Annual consumer price inflation hit 8.5% in April, while food costs rose 22%. In a move to appease its citizens, the government said it had set aside $2.9bn in subsidies to help those most affected by the price rises. China's action came just two days before an international oil summit in Saudi Arabia to discuss rising energy costs. |