The world's second-largest economy is conflicted as far as an OPEC production cut is concerned, one analyst told CNBC.
China is facing a "trade off" between its oil industry and the rest of its economy, Miswin Mahesh, an oil market analyst for Barclays, told CNBC via telephone. Ultimately though, Mahesh asserted that "it is in China's interest that OPEC doesn't cut."
Mahesh explained that on the one hand, the Middle Kingdom's upstream oil industry would benefit from a production cut and subsequent higher prices as its domestic investment is falling. This is due the country's slowing economic growth. But downstream, and for the rest of the economy which relies on imported oil, Mahesh said that a cut might "not be in their interest."
The Organization of Petroleum Exporting Countries (OPEC) agreed to tackle the global supply glut last month by cutting production levels by up to 700,000 barrels per day.
In order to shore up supply as domestic production slows, Mahesh said that China has invested in the oil infrastructure of a number of OPEC countries, including Ecuador, Venezuela, Iran and Iraq. When asked about the incentives behind these particular choices, Mahesh said that these partnerships could provide a secure future source for imports.