Global oil price drops to its lowest in 10 months

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.