OEF Rapid Review Articles
China’s crude oil output is at a 6-year low as the country’s state-run energy companies continued to pump less from aging, high-cost fields.
Production during August in the world’s largest energy consumer dropped 9.9 percent from a year ago to 16.45 million tons, which is about 3.89 million barrels a day. This is the lowest figure since December 2009. In addition, during the first eight months of the year output dropped 5.7 percent. Output from China, which was the world’s fifth-biggest producer last year, has been sliding as state-run companies shut fields that were too expensive to operate after prices fell earlier this year to the lowest since 2003. The country is forecast to lead production declines across Asia, helping tighten the global market as the world’s largest consuming region relies more on overseas supplies. China’s imports rebounded last month to the highest since April. Gordon Kwan, head of Asia oil and gas research at Nomura Holdings Inc. in Hong Kong pointed out that “China’s crude output won’t see an apparent rebound unless Brent recovers to $60 a barrel level, as most of China’s aging oilfields can’t make a profit below this price,” adding that “The global oil market rebalancing is progressing”, and “Massive capital expenditure cuts have translated to more oil supply destruction.”.
LINK TO THE SOURCE ARTICLE:
China Oil Output at 6-Year Low, Imports Rebound
LINK TO THE SOURCE ARTICLE:
China Oil Output at 6-Year Low, Imports Rebound