Oil prices could fall further this year as the global oil market is oversupplied. The supply and demand of China's refined oil market, meanwhile, is growing steadily. China was the world's second largest oil refining country after the United States as of the end of 2015, according to a blue book report on the country's oil and gas industry.

The report, titled “2016 China Oil and Gas Industry Development Analysis and Development,” was issued by the China Petroleum Enterprise Association and China Oil and Gas Industry Development Research Center on March 21.

As oil prices continue to slump, development and investment are also likely to drop, said Peng Yuanzheng, Vice-President of China Petroleum Enterprise Association. Global reserves of oil and gas remain stable. OPEC countries had around 1,216 billion barrels of crude oil reserve in 2014, accounting for 73 percent of the global supply.

The report noted that global economic recovery remains uncertain in 2016. Factors like OPEC members keeping oil supply steady plus the U.S. shale gas revolution will contribute to the crude oil glut.

For the Chinese market, consumption of crude oil came to 518 million tons in 2015,a year-on-year increase of 5.8 percent. The consumption of natural gas was 185.5 billion cubic meters, an increase of 2.9 percent from 2014.

Meanwhile, China's crude oil and natural gas production has slowed. China's annual crude oil production was 213 million tons, up 1.8 percent from last year, and the country's natural gas production was about 135 billion cubic meters, a year-on-year increase of 5.6 percent.