"China will deepen reform of its oil price system, and prices will reflect the international oil market", said Zhang Xiaoqiang, vice minister of China's National Development and Reform Commission, speaking at the 2009 Annual Conference of the Boao Forum for Asia, which was held in Hainan from April 17 to 19.

Commodity prices have been increasing in the recent years, and wild fluctuations occurred in 2008. The price of crude oil dropped to $45 per barrel in the fourth quarter of 2008 last year, just 30 percent of the peak reached in July of the same year. Fluctuations in commodity prices are not conducive to sustained development, said Zhang.

Zhang said the fluctuations in commodity prices were the result of the global financial crisis.

He said oil prices in China will be adjusted in line with the international market, and the oil price system will be reformed to make it more market-oriented. "China has initiated its second oil reserve project, and reform of the oil price system should be promoted," Zhang told reporters.

Fu Chengyu, general manager of China National Offshore Oil Corporation (CNOOC) said the current crisis is due to an excess of U.S. dollars. He said that Chinese enterprises face trade protectionism in their efforts to expand overseas. CNOOC will not consider overseas mergers until it finds suitable projects, he added.

(China.org.cn April 20, 2009)