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Global oil price drops to its lowest in 10 months

CGTN | Fri,2017-07-07


The global oil market began a new round of dropdown at the end of May with the crude oil prices dropping by 17% during May 24 to June 21 in Europe and America, the lowest in the past 10 months.

The domestic oil prices in China, at the same time, also dropped twice in a row.

Contrary to some pessimistic prediction about the oil price's dropping to 30 US dollars per barrel, some oil market participants began “bargain hunting” to boost the oil market. As a result, the global crude oil price was up by 11%, or nearly 5 US dollars per barrel, from June 22 to July 3.

Analysts from consultancy firm Wood Mackenzie foresaw the global oil market to continue growing in the short-term with prices set to rise in the second half of 2017 during a conference in Beijing on Wednesday.

The global oil demand is expected to increase by 12 million barrels per day through 2035, according to the consultancy. The demand in China, however, will fall over the same period, as the country seeks to transition to a more sustainable mode of development.

Wood Mackenzie head of cross-commodity analytics Fu Peng said the recovery is great, but it is still not yet a time to relax.

Although the oil market is turning around, according to the latest PMI indicator, the recovery is not stable enough due to some geopolitics and war issues, and there may also be some downside risks on the demand side.