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China's oil production seen falling by 7% this year

This plays into the hands of Opec as it seeks to prop up the global oil market

Hong Kong

OPEC'S campaign to prop up oil prices is getting unlikely support from its biggest customer.

China's production is forecast to fall by as much as 7 per cent this year, extending a record decline in 2016, according to analysts at CLSA Ltd, Sanford C Bernstein & Co and Nomura Holdings Inc. That's about the same size as the output cut agreed by Iraq, the second-biggest producer in the Organization of the Petroleum Exporting Countries, which late last year reached a deal to trim supply to support prices.

"China's domestic crude output decline will certainly help Opec's plan to reduce global supply," said Nelson Wang, a Hong Kong-based oil and gas analyst at CLSA who sees a 7 per cent slide...

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