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Oil, Gas, Petrochemical and Energy Field Specialized Channel
Oil, Gas, Petrochemical and Energy Field Specialized Channel
Oil, Gas, Petrochemical and Energy Field Specialized Channel

Chinese Crude Oil Output Rises for First Time in Nearly 3 Years

Most Chinese oilfields can break even with oil at $70 per barrel.

 

China's crude oil output rose in August for the first time in nearly three years, data showed on Friday, climbing after the Chinese central government called for a boost to national energy security amid trade tensions with the US.

Monthly crude oil output hit 16 million tons, or 3.77 million bpd, up 0.2 percent from August 2017 and marking the first year-on-year increase in tons and barrels per day (bpd) since October 2015, according to data from the National Bureau of Statistics.

Year-to-date output was 125.95 million tons, down 1.8 percent from a year earlier.

National energy majors raised output in August as international oil prices approached $80 a barrel and after the state call to ramp up local oil and gas output amid the escalating trade war with the US, experts said.

Most Chinese oilfields can break even with oil at $70 per barrel, said Seng-Yick Tee at consultancy SIA Energy. Benchmark global prices stood at around $78 on Friday.

The data also showed China's crude processing rate fell in August to its lowest since December, with independent refiners prolonging maintenance shutdowns as higher oil prices and a new tax regime ate into margins.

China refined 50.31 million tons of crude oil in August, or 11.85 million bpd, up 5.6 from a year ago. The pace of processing fell from 11.95 million bpd in July and compared with a record-high of 12.13 million bpd in March.

For the first eight months, crude runs were up 8.7 percent at 400.41 million tons, or 12.03 million bpd.

Meanwhile, China's natural gas production rose 9.7 percent in August over the same year-ago level to 12.9 billion cubic meters (bcm). That was down from 12.96 bcm in July.

Output for the year-to-date was 104 bcm, up 5.9 percent as producers gear up for peak demand during the looming winter.

 

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