The price of oil has slowly fallen a few dollars from its recent highs. Today the price closed at $69.55, a 2.6% drop for the day.
The slipping price of oil is good for everyone, as high oil prices would hurt economic recovery. But a lower price is really going to help China, who’s demand for oil has returned in a big way.
Yesterday, Platts said that China’s oil demand grew 6% in May, its second consecutive month of demand growth. (Platts didn’t provide data on worldwide demand this month.)
If the price keeps falling, China will be able to stock up for cheap. And it’s not like demand has a big effect on the price of oil lately, so China can just keep eating it up, without worrying about driving up the price.
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