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China oil producers face cuts after period of 'runaway' spending

Published Fri, Nov 7, 2014 · 09:50 PM
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Sydney

THE slump in oil prices is a boon to China as the world's second-biggest oil consumer. It's a different story for the country as a major producer.

The slide in prices to a four-year low threatens to cut spending, production and profit for the country's oil companies including PetroChina Co. Brent, the global benchmark, has fallen 26 per cent this year to below US$83 a barrel.

The decline, amid signs that global supply is outpacing demand, is pressuring profits from oil extraction across the globe. After a flurry of acquisitions and spending that's stretched the balance sheets of Chin…

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