Oil producers to cut production in 2016
Oil producers will cut output this year and next as demand from China slows, according to a report from Bloomberg.
In addition, the oil industry expects its gross margin to fall as demand declines, the report said.
The world’s largest oil producer, Saudi Arabia, said last week it would cut its output by 5.5 million barrels per day to meet China’s demand.
U.S. crude oil prices, meanwhile, are expected to fall by up to $30 a barrel, with some of that expected to come from the U.K. and the U,S.
Oil companies are concerned about slowing demand in China, which is slowing down the pace of its economic growth, a trend that will accelerate as global demand rises.
China is expected to overtake the U