China's foreign oil dependency rate may have reached a high of between 62 and 65 percent in 2016, and the number is expected to increase in 2017, Shanghai Securities News reported.

Meanwhile, the latest official data indicates that the 2016 output of China's two largest oil fields, Daqing in northern Helongjiang province and Shengli in Shandong province, fell by over 5 million tons compared to in 2015.

China's domestic crude production dropped to 200 million tons in 2016, according to preliminary statistics. High cost is one reason for the slash, insiders explained. Data indicates that the production cost of domestic crude oil stands at $45-50 per barrel, higher than the global average. Under such circumstances, imported crude oil is more cost-effective.