China Oil Output Seen Cracking Under Pressure of Price Collapse

  • Domestic production forecast to fall first time since 2009
  • Crude output may decline by as much as 5 percent: Nomura

Will Oil Prices Improve by End of 2016?

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Cheap crude is a double-edged sword for one of the world’s biggest markets.

China’s output in 2016 will decline between 3 percent and 5 percent from last year’s record 4.3 million barrels a day, according to analysts from Nomura Holdings Inc. and Sanford C. Bernstein & Co. That would be the first decline in seven years and the biggest drop in records going back to 1990. The country is the world’s fifth-largest producer and biggest consumer after the U.S.