Q+A-Is China's oil demand immune to price rises?


By Judy Hua and Tom Miles BEIJING, Feb 21 (Reuters) - China raised gasoline, diesel and jet fuel prices on Sunday for the first time in 2011. Simple economics dictate that demand should fall as prices rise. But in China, the situation is more complicated. Here's a look at the relationship between prices and oil demand in China. WILL THE LATEST FUEL PRICE RISE CRIMP DEMAND? No. In fact, the fuel price rise aims to help meet demand. Without the rise, high crude oil prices would weigh ...

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