China, oil output drops

China, oil output drops

Editorial Staff
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According to data from a National Bureau of Statistics report, crude oil production has reached it's lowest levels in the past 15 years

Chinese oil production has fallen sharply touching its lowest levels since 2001 with an output for May that went down to 7.3% at 16.87 million tons. The data comes from the National Bureau of Statistics, which shed light on how the new OPEC policy is bearing fruit, pushing the high cost producers away from the market and giving back greater shares to exporting countries. The Chinese fall could contribute to the rebalancing process of the crude oil market, and, at the same time, maintain the current increase in prices. According an analysis carried out bu the Energy Information Administration (EIA) and other authoritative sources such as Goldman Sachs, the excess of supply seems to be reaching its limit due to the decrease in investments in all sectors rendered less profitable by low crude oil prices.