China sharply raised domestic energy prices across the board on Friday, as authorities shifted policy in the face of complaints that price controls were causing turmoil on global oil markets.
The move immediately sent oil prices tumbling, in a sign of China’s growing impact in the global economy. But analysts said it was far from clear what the long-term effect would be from the surprise move announced late Thursday.
The move came just two days before an international “oil summit” in Saudi Arabia called to discuss the soaring cost of oil, which has wracked stock markets and, in some places, led to protests that have unnerved governments.
Read also China Stocks Advance, Led by Power Producers, on Fuel Prices by Zhang Shidong, China allocates 19.8 bln yuan in subsidies to offset fuel hikes by Xinhua, and China raises prices for fuel, electricity from Ap.
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