Crude oil production in China slid by the most in 15 years in May in yet another sign that oil cartel, OPEC’s strategy of flooding markets to keep prices subdued in order to squeeze higher-cost producers is working.

Data released by China’s National Bureau of Statistics showed that oil production in the world’s biggest energy consumer slipped by 7.3% compared with a year ago to 16.87 million metric tons representing the largest decline since 2001.

Declining Chinese output could potentially help balance oil markets and preserve an 80% rally in crude from a 12-year low back in January this year. The rally in prices has somewhat vindicated OPEC’s strategy of prioritizing market share over short-term price concerns.

“From what we can see, the glut appears to be diminishing as companies mothball unprofitable fields and cut capex. This reduces the quantity of oil flooding the market but we suspect the Saudis will want to keep the pressure on so as to reduce the chance of companies reopening fields to take advantage of higher prices,” said Veronica Carey, a commodities analyst at Softbank CIBC International

“Lower domestic output in China is indicative of the effect of spending cuts by the country’s oil drillers against a backdrop of persistent low prices,” Carey added.

PetroChina Co., China’s biggest oil producer, warned in March that it expected oil and gas output to decline for the first time in 17 years as it shutters fields that it deems to have “no hope” of being profitable. Softbank CIBC International has an end-of-year price target of $61 a barrel on Brent crude.

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