Abstract: In recent years, the international oil market is in the state of supply exceeding demand and the price of oil continues to decline, due to the global economic depression, U.S. breakthrough in shale gas technology, OPEC countries maintaining its production, and financial and geopolitics factors. The international oil market is entering a "rebalancing" period, and oil supply and demand and oil price are faced with a new round of restructuring. Using the equilibrium model, we analyze the supply and demand of international oil market, and find that the fundamentals of oil supply and demand is not easy to change in the short term, and oil price will stay low. But in the mid-long term, oil price could reach and stay at about $80 per barrel. Therefore, as a major oil producer, consumer and importer, China should seize this opportunity to accelerate structural reform of China's oil and gas industry and energy structure, to build a more complete strategic oil reserve system and to accelerate the construction of crude oil futures market, so that we can better ensure the national oil safety.

Key words: low oil price, international oil market, market equilibrium, oil security, energy structure