Swings in World Oil Price and China's Petroleum Security

Since 2004 last half, shock effect of high world oil price has been amplified continuously, which makes China's petroleum security face severe challenges. With imperfect oil market system, weaker market competitiveness, single trade means, rigid pricing mechanism and lagging market response, China still can't avoid the risk of high oil price. Accordingly, we must promote marketization reform, speed up establishment of petroleum futures market, set up rational pricing mechanism of oil products and actively participate international oil market's competition, which is the best method to avoid international oil market's risk and increase degree of petroleum security in China.