China cuts domestic oil prices

Recent global economic data were generally lackluster and demand in the United States and Europe has stayed sluggish, which resulted in sufficient global oil supply and declining crude prices, according to JYD Online, a Beijing-based bulk commodity consultancy.

"Gasoline and diesel prices will likely continue to decline," said Yu Jinbo, an industrial analyst at the firm.

In the last month, international oil prices have been declining, albeit with some volatility. London-based Brent, the crude benchmark prices for more than half of the world's oil, dropped to below $100 a barrel for the first time since July 2012.

The continuous decline was caused by the drop of commodity prices, among which the dramatic fall of gold prices was the most obvious one, Lin said.

At the same time, weak demand from the US and China - the two largest oil consumers in the world - is also behind the decline in oil prices, he said.

He predicted that oil prices will stay weak for the first half of the year.