$78.60 a barrel of oil

[GetSCORECash]

it's only $78.60 a barrel of oil in CHINA.

NEW YORK (Reuters) - China, the world's second largest oil consumer, will increase retail gasoline and diesel prices by 1,000 yuan ($145.50) per tonne from Friday, according to industry sources.

Fuel subsidies have helped propel China's demand and supported a six year rally in crude oil rally that has sent prices up nearly seven-fold.

Oil prices tumbled $3 following the news.

ANALYST COMMENTS:

TIM EVANS, CITI FUTURES PERSPECTIVE IN NEW YORK.

"Even with the $18.60 (per barrel) increase in price (Chinese fuel prices) are still well below the global market and the subsidy amounts to something on the order of $56 per barrel."

"This increase amounts to approximately $18.60 per barrel and will raise fuel costs from an approximate $60 per barrel to

$78.60."

So if you live in China, gas is going up for you. But it's half the price the US consumer is paying.

JOHN KEMP, COMMODITIES ECONOMIST AT RBS SEMPRA IN LONDON

"This is very significant, a watershed move which suggests the Chinese government is prepared to risk unpopularity to curb the growth in domestic fuel demand. We've already seen other Asian economies cut subsidies and the one big hold out, until now, was China."

MIKE FITZPATRICK, VICE PRESIDENT, MF GLOBAL IN NEW YORK

"The news China will raise fuel prices caused crude prices to retreat. The assumption is demand is going to be hit pretty significantly."

PHIL FLYNN, ANALYST, AT ALARON TRADING IN CHICAGO

"Nobody thought China would raise prices on gasoline and diesel this much. This is huge. Demand should fall."

ERIC WITTENAUER, ANALYST, WACHOVIA SECURITIES, ST. LOUIS:

"Certainly if the Chinese raise their prices, cut subsidies and reduce some of the insulation around their consumers, then you would expect that would impact their demand growth. As the developing countries of the world are underpinning the demand side of this market, this could prove bearish for commodities."

[Sly]

That may be true, but they don't make the money we do. If they made it half our salaries for the same job, it effects them relatively the same as it does us.

[GetSCORECash]

But this is more then just about the chinese consumer who is buy gas for his first car.

Everything from the DVDs being manufactured in China are going to go up. While we hate the fact that the chinese government subsidize the oil it imports. Those t-shirt in walmart are now going to be worth more, due to this.

[TidalWave]

good. i rather pay a few bucks more for a t-shirt than this much for gas

[dropped9]

Originally Posted by SCORE-Cash

But this is more then just about the chinese consumer who is buy gas for his first car.

Everything from the DVDs being manufactured in China are going to go up. While we hate the fact that the chinese government subsidize the oil it imports. Those t-shirt in walmart are now going to be worth more, due to this.

good point...

outsourcing is going upppppppppp

[Socks]

I head on TV today that only 1 in 70 chinese families own a car, and most likely they have a lot of people per household.

And we're already getting really scared of them driving.. Lots of US families have 5+ cars. There's going to be major wars over this for sure.

[pornguy]

Originally Posted by Sly

That may be true, but they don't make the money we do. If they made it half our salaries for the same job, it effects them relatively the same as it does us.

Thats the thing they make far less than half.

[emjay]

Originally Posted by Socks

I head on TV today that only 1 in 70 chinese families own a car, and most likely they have a lot of people per household.

And we're already getting really scared of them driving.. Lots of US families have 5+ cars. There's going to be major wars over this for sure.

This picture was taken in China.

Kinda difficult to imagine what the traffic jams (or oil price!) would be like if they all owned a car like we do!