Quarterly Market Commentary: Policy Correction Unfolding
In the second quarter of 2006 China's energy markets are finding some long-sought stability. Shortages and bottlenecks no longer plague the oil, power, and coal sectors, and China's policymakers are taking this moment to begin to address long-deferred choices, draw up new blueprints, and correct the regulatory mistakes of the recent past. These include
* oil price rationalization toward international levels
* new commercial initiatives to mobilize natural gas supply to meet demand
* rethink of long-deferred power reforms and development
* coal markets find price stability allowing government to take cut
