Houston Community News >> Chinese Subsidy Could Bring Down Oil Prices

6/23/2008-- China's slashing of fuel subsidies is good news for the long-term outlook on world oil prices.

The world's second largest oil consumer, after the US, China has cut fuel subsidies by 20 per cent.

Domestic and commercial users had been getting subsidies of up to 50 per cent.

Commodities analyst with Macquarie Equities, Damian Graham, says it should lower demand, which in turn will lower the price of oil.

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