Low oil prices and spending cuts are cutting into China’s oil production, a little known source of output declines that are helping to balance the market. New data shows that China’s oil production fell 5.6 percent in April compared to the same month a year earlier, falling to just 4.04 million barrels per day. Between January and April, production also fell by 2.7 percent. The declines came because China’s large state-owned oil companies are struggling with low oil prices, and just like its international competitors, they have had to make painful spending cuts. Lower levels of spending are starting to translate into a drop off in production as the necessary maintenance to keep field output elevated is reduced. Much of China’s oil production comes from large oilfields that are mature and facing declining output. More investment helps to slow decline, but significant capex cuts are allowing production to slip. […]