More Chinese Oil Output Succumbs to Glut Saudis Seek to Cap
- China's Sinopec shutting four fields in Shandong province
- Closed fields are among the least-profitable run by unit
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As the world’s biggest oil producers show they’re willing to cap output to revive prices, there are increasing signs OPEC’s strategy of driving higher-cost suppliers out of the market by keeping taps open is bearing fruit.
A unit of China Petrochemical Corp. on Wednesday said it will shut its least profitable fields because of the price slump. That’s after Cnooc. Ltd., the country’s biggest offshore crude explorer, announced plans to cut output and capital spending this year. The nation’s production may slip 3-5 percent from last year’s record 4.3 million barrels a day, Nomura Holdings Inc. and Sanford C. Bernstein & Co. say, in what would be the first drop in seven years.