Back to List
2026 Complete Guide to Oil Price Trends: International Oil Price Trends, Taiwan Oil Price Mechanism and Fuel Saving Strategies
In 2026, international oil prices will fluctuate violently due to the situation in the Middle East. A complete analysis of oil price trends, Taiwan's floating oil price mechanism, China Petroleum's absorption policy and practical fuel-saving tips.
oil price
international oil prices
Medium oil
floating oil price
Fuel efficient
come on
crude
Last Updated:2026-05-27
Table of Contents
1. What happens to international oil prices in 2026?
2026 will be a year when international oil prices fluctuate violently. When the U.S.-Iran war broke out on February 28, international crude oil prices soared to over $100 per barrel. Subsequently, the situation in the Middle East continued to be stalemate, and oil prices remained high for three months. It was not until May 21 that the situation in the Middle East turned for the better and international oil prices fell sharply.
-
End Of February: Brent Surges From $75 To $100+ As Us-Iran Conflict Breaks Out
-
March-April: The Situation In The Middle East Is At A Stalemate, And Oil Prices Remain High And Volatile.
-
Mid-May: The Market Waits And Sees Before The Sichuan-Xi Meeting, Oil Prices Fluctuate And Fall
-
May 21: The Situation In The Middle East Turns For The Better, And Oil Prices Fall Sharply
flowchart LR
A[February US-Iraq war] -->|Surge in oil prices| B[March-April high-end shock]
B --> C[Sichuan and Xi will wait and see in mid-May]
C --> D[5/21 Middle East transfer]
D -->|Oil prices fall| E[Outlook for the second half of the year]
2. How to calculate floating oil prices in Taiwan?
Taiwan's oil price is not determined by the government, but is a "floating oil price mechanism" calculated using a formula based on international oil prices. Every Sunday, China National Petroleum Corporation will announce the adjustment range of oil prices for the next week.
-
Calculation Basis: Based On The Weighted Average Price Of North Sea Brent Crude Oil And Dubai Crude Oil
-
Adjustment Frequency: Once A Week, Announced On Sunday And Effective On Monday
-
Range Of Increase Or Decrease: Calculated Based On 70% Of The Previous Week’S International Oil Price And 30% Of The Exchange Rate
-
Asian Neighbor Minimum Price Restriction: Taiwan’S Oil Price Must Not Be Higher Than The Lowest Price In Its Asian Neighbors (Japan, South Korea, Hong Kong, Singapore)
-
Stability Mechanism: When International Oil Prices Fluctuate Violently, Cnpc Will Activate The "Absorption Mechanism", Allowing Cnpc To Absorb The Increase On Its Own
flowchart TD
A[International oil price changes] --> B[CNPC formula calculation]
B --> C{Rising more than Asia?}
C -->|Yes| D[Asian lowest price limit]
C -->|No| E{Severe fluctuations?}
E -->|Yes| F[medium oil absorption mechanism]
E -->|No| G[Normal price adjustment]
D --> H [effective on Monday]
F --> H
G --> H
3. How much oil has been absorbed? What impact did it have on you?
After the outbreak of the US-Iraq war in 2026, in order to stabilize domestic prices, Taiwan PetroChina significantly absorbed the increase in international oil prices. From February 28 to May 3, PetroChina estimates that the total absorption of gasoline and diesel will be approximately 13.2 billion yuan. This means that if there is no absorption mechanism, the price of your gas will be much more expensive now.
-
Absorption Amount: Approximately 13.2 Billion Yuan (2/28-5/3)
-
Conversion Impact: Without Absorption, Petrol Could Be $5-8 More Expensive Per Liter
-
Based On The Average Car Fuel Tank Of 50 Liters, It May Cost An Extra 250-400 Yuan To Fill Up Once.
-
The Cost Of The Absorption Mechanism: Cnpc Will Lose Money And May Eventually Be Subsidized By The Government Budget
Important Notes
The oil price absorption policy may be adjusted according to the international situation and the government's financial situation. The above data comes from CNPC's public information, and the actual price is subject to CNPC's weekly announcement.
4. 5 practical tips to save money on gas
Even if gas prices fluctuate, mastering the following tips can effectively reduce your gas expenses.
-
Tip 1 — Fill Up On Monday Morning: Gas Prices Take Effect On Monday, So If Prices Are Going To Increase This Week, It’S More Cost-Effective To Fill Up On Sunday Night Or Early Monday Morning
-
Tip 2 — Credit Card Rewards: Banks Such As Citic And Cathay Offer 3-5% Gas Rewards. 60,000 Yuan A Year, Giving Back 1,800-3,000 Yuan
-
Tip 3 — Self-Service Refueling: China Petroleum’S Self-Service Refueling Is 0.8 Yuan Cheaper Per Liter. Save $40 On 50 Liters, Nearly $2,000 A Year
-
Tip 4 — Make Good Use Of Apps To Compare Prices: Gasbuddy Or A Gas Station App Can Compare Nearby Gas Prices And Choose The Cheapest One.
-
Tip 5 — Don’T Wait For The Oil Light To Come On Before Filling Up: When The Oil Level Is Low, The Oil Pump Is Taxed And Consumes Fuel. Keep The Tank At Least 1/4 Full
5. What do you think of oil prices in the second half of the year?
Key factors affecting oil prices in the second half of the year.
-
The Situation In The Middle East: There Was A Turnaround In May But Still Unstable, The Biggest Variable
-
Opec+ Production Decision: If Production Increases, Oil Prices Will Have Downward Pressure
-
Global Economy: Taiwan’S Economic Growth Is Strong (Q1 Growth 13.69%), And The Demand Side Supports Oil Prices
-
Dollar Trend: A Weaker Dollar Helps Crude Oil Prices Rise In Dollar Terms
-
Comprehensive Judgment: If The Middle East Continues To Ease, Oil Prices May Remain In The Range Of Us$65-80 In The Second Half Of The Year
Important Notes
The above is a reference for trend analysis. International oil prices are greatly affected by geopolitics, and the actual trend may be significantly different from expectations.
6. Electric Vehicles vs. Fuel Vehicles: Choices under Fluctuating Oil Prices
The dramatic fluctuations in oil prices have led more people to consider electric vehicles. Here's an objective cost comparison.
| Compare items | Fuel vehicle | electric car |
|---|---|---|
| Monthly fuel/charging fees | About 3,000-5,000 yuan | About 500-1,000 yuan |
| Affected by oil price fluctuations | big | none |
| Car price (same class) | lower | Higher (but the gap is narrowing) |
| Maintenance fee | Higher (engine oil, spark plug, etc.) | lower |
| Charging convenience | not applicable | Charging facilities need to be considered |
Key Takeaways
- 1 In 2026, international oil prices fluctuated significantly due to the situation in the Middle East, and soared after the outbreak of the US-Iraq war.
- 2 Taiwan PetroChina has absorbed more than 13.2 billion yuan since February to stabilize domestic oil prices
- 3 The situation in the Middle East turned for the better in late May, and international oil prices fell sharply.
- 4 Make good use of the floating oil price mechanism and refueling timing to save considerable gas money every month
Related Links
Related Quick Guides
2026 AI Investment Complete Guide: Industry Chain Analysis, Taiwan and US Stock ETF Recommendations, Risks and Three Strategies
How to enter the AI investment market? This article contains a panoramic view of the AI industry chain, 6 major concept stocks in Taiwan stocks, recommendations for Taiwan and US stock ETFs, 3 strategies (conservative/sound/active), 6 major risks and pitfalls
2026 Complete Guide to Side Business Income: 12 Popular Side Businesses, Selection Process and Tax Filing Practices in the AI Era
What side jobs can still make money in the AI era? This article contains a comparison of 12 popular side hustles in 2026, the selection and decision-making process, time management skills, side hustle tax practices, and the judgment of switching from a side hustle to a full-time job.
2026 Cryptocurrency Beginner Guide: Bitcoin, Ethereum, and DeFi
2026 cryptocurrency beginner guide: Learn how Bitcoin, Ethereum, and DeFi work. Set up wallets, choose exchanges, and manage risks — a complete guide for newcomers.
ℹ️
General Disclaimer
The information provided on this site is for reference only. We do not guarantee its completeness or accuracy. Users should determine the applicability of the information on their own.