Chinese crude output slumps to new low

China

BEIJING, June 15, 2017 – China’s National Bureau of Statistics on Wednesday released its figures on domestic crude production for May, which showed a fresh drop to the lowest level since documentation by the bureau first began in 2011.

Chinese oil output during the month of May came out at 3.38 million bopd, down 3.7% from the year prior. “Declining output this year comes as China’s major oil fields Daqing and Shengli announced production cuts at the beginning of the year. The pace of decline in production will ease this year due to higher crude prices,” an analyst was quoted as saying by Reuters.

Forecasts for the whole of 2017 suggest level production figures or, should oil prices further stabilise, a small year-on-year increase in output.

Gas production during May came out at 12 bcm (424 bcf). While the figure represents a six-month-low for China, it is 10.5% more compared with the same period last year.