China’s oil output fell to a seven-year low in October as upstreams continue to defer new drilling projects.
According to data seen by Reuters, China’s oil output fell just over 11 percent year-over-year to 16.05 million tonnes in October but was up from 15.98 million tonnes in September.
China’s oil production fell to 3.78 million barrels per day (bpd), down from 3.89 million bpd the previous month.
That oil production figure marked China’s lowest level since May 2009, Reuters said.
A Beijing-based crude trader told Reuters that the production dip is tied to skepticism that global crude prices would sustain price gains seen in September.
PetroChina saw crude output dip to 696.6 million barrels for the first nine months of the year from 722.9 million a year earlier, Reuters said.
State-owned CNOOC saw its net oil and natural gas production slip 7.7 percent during the third quarter.
China’s domestic oil supply fell to 3.99 million bpd during the first ten months of 2016, down from 4.3 million bpd during the year-ago period, Reuters said.
According to government data collected by S&P Global Platts, China’s apparent oil demand contracted by 2.4 percent year-over-year in September to 10.85 million bpd.
The International Energy Agency said earlier this month that it expects global oil demand growth to ease to 1.2 million bpd this year due to “sharp slowdowns in the OECD Americas and China.”