Malaysia and Brunei are doing their bit for the global pact to rebalance oil markets, but the biggest production cuts in Asia are coming from a country that didn’t sign up. China, the world’s fifth-biggest producer last year, has reduced output by about 300,000 barrels a day this year, more than the combined cuts announced Saturday by non-OPEC countries, excluding Russia, as part of a deal coordinated with the producer group. The decline is expected to continue next year, with Chinese production shrinking as much as 200,000 barrels a day, according to consultant Energy Aspects Ltd. “We’re seeing a natural decline in China oil production as fields are very mature and depletion rates are high,” said Virendra Chauhan, a Singapore-based oil analyst at industry consultant Energy Aspects Ltd. “The price level we had in last 12 to 18 months has incentivized imports over spending on domestic production.”
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