China’s struggling oil sector has entered a challenging new phase: long-term decline of its domestic production. According to The Wall Street Journal, oil production in China likely peaked last year at around 4.3 million barrels a day, according to new data and interviews with industry executives. The development has significant implications globally, including the potential for higher crude prices over time as China steps up imports to meet rising demand at home. China is the world’s fourth-largest oil producer, which has helped it keep a lid on imports. Global oil prices could over time be given a lift by rising Chinese demand, although prices are determined by a wide variety of factors related to global supply and demand.
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