With oil prices oscillating between $75 and $80 per barrel, market watchers in Asia are keeping a close eye on China, whose commitment to its year-old retail pricing regime could be tested if oil prices break definitively above the $80 level (PIW Nov.23,p8). The price regime is designed to keep a tight rein on consumer prices and prevent economically damaging fuel shortages and aims to guarantee refiners a 5% profit margin by adjusting retail prices in line with prices for imported crude (PIW Apr.20,p1). Since it was introduced in December 2008, there have been eight adjustments - three cuts and five hikes, including the most recent increase on Nov. 9.
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