Can Increase in Oil Output and Import Volume Effectively Stabilize China’s Oil Price?

This paper shows how Chinese oil output,import and export influence oil price and reveals the cointegration relationship between international oil price and domestic oil price through empirical approach.Empirical results show whether to increase oil outputs or imports has limited effect on stability of the oil price,because the extensive economy in China has an extremely high growth rate on oil consumption demand,and the increment of Chinese oil output and import volume cannot keep up with the demand growth,so that the oil price keeps rising.Along with China’s economic restructuring,disappears of population bonus and decline of population of the effective labor force,the growth rate of domestic economy decreases.All the factors inevitably lead to China’s dependence of foreign resource to become much more steady or even decline.At this turning point,it is dangerous to simply claim energy-hungry or energy supply crisis.It is also an unwise and grave lag measure to purchase amounts of overseas resources at any cost recently.