Core Insights - The upcoming adjustment of gasoline and diesel prices in China is expected to result in a decrease of approximately 120-135 CNY per ton, translating to a reduction of 0.09-0.13 CNY per liter for 92/95 octane gasoline [3][4] - The current average price of crude oil is 68.12 USD per barrel, with a notable increase in prices during the current pricing cycle, driven by concerns over tight oil supply and seasonal demand [1][3] - Despite the recent price increases, there are doubts about the sustainability of the upward trend in oil prices due to potential economic uncertainties and increased production from OPEC+ [1][3] Oil Price Adjustment Cycle - The current pricing cycle for gasoline and diesel started on July 2 and will conclude on July 15, with the average crude oil price influencing the domestic price adjustments [3] - As of July 11, the WTI crude oil price rose to 68.45 USD per barrel, while Brent crude reached 70.36 USD per barrel, indicating a strong upward trend in oil prices during this cycle [1][3] - The anticipated price drop for gasoline and diesel is based on the average crude oil price remaining around 68.27 USD per barrel, with adjustments expected to narrow the decrease to 130-135 CNY per ton [3] Market Dynamics - The market is currently experiencing a strong upward trend in oil prices, supported by seasonal demand and concerns over supply tightness, despite a recent unexpected increase in U.S. crude oil inventories [1][3] - The International Energy Agency's report on global energy supply being tighter than expected has further fueled the bullish sentiment in the oil market [1] - However, there are concerns regarding the potential for a decline in oil prices due to the upcoming implementation of tariffs and reduced energy demand from major Asian economies [1][3]