قالب وردپرس درنا توس
Home / Business / The trade war does not kill US oil exports

The trade war does not kill US oil exports



It has been a year since the China-US trade war began, and up until this past week, China had refrained from slashing US crude oil import duties, even though it announced other measures in retaliation of US import tariffs on Chinese goods. These days are over.

Last week, the trade war finally captured US crude oil exports to China. What does this mean for the US oil industry?

For a year, Chinese refineries and traders have held collective breath, afraid of the day when the government would finally unleash tariffs on US crude oil imports. Now they have the chance to test their strategies to secure the risk of buying US oil amid a toll that caught China-bound tankers out on the sea.

China announced on Friday that it would introduce US $ 75 billion worth of US goods, including crude oil, in two batches beginning September 1

and December 15.

The 5 percent crude oil tariff – effective this coming Sunday – has captured several tankers carrying US crude on their way to China. Some of these tankers have already docked or will have arrived in Chinese ports by September 1, but others will not make the trip in time, reports S&P Global Platts, citing ship tracking data.

For a year now, Chinese buyers have been reluctant to buy US crude, for fear that tariffs may come at any time, disrupting plans and making their oil more expensive. Many of those who continue to buy oil from America have secured risk by having the option of

alternative port destinations for the cargoes.

Last month, Chinese imports of US raw materials were estimated to have been at their highest levels since the trade war began, according to customs data quoted by Platts. China's August imports may also be high because some rushed to China under the cord before the tariff came into force. Still, given that the Chinese announcement came just a week before August ends, not many oil tankers will make more than 55-day sailing in time to avoid customs.

In the midst of the trade war, China's largest refinery Sinopec is now said to be preparing contingency plans for its US imports since it has a time agreement to purchase up to four very large crude oil (VLCC) loads – each capable of carrying 2 million barrels of oil – each month. According to Reuters sources, the tariff would make US commodities $ 3 a barrel more expensive for Chinese buyers.

Sinopec plans to apply for some sort of tax exemption for US crude oil imports, sources told Reuters. The Chinese refiner is also considering storing US oil in adhesive storage, which has not yet cleared customs duties in China, or forwarding it to other destinations, according to one of the sources to avoid the duty rate altogether. Related: Natural gas prices ready for dramatic price increase

After somewhat higher imports in July and possibly August, Chinese imports of US crude are expected to crash again after the September start and customs duties in, say analysts themselves whether anyone expects China to continue to import – albeit at a very low rate – US oil.

According to JLC International, China is likely to stop importing US crude as of next month.

China stops importing its crude oil, the US will probably have to find more buyers for its still growing oil production, but finding another market the size of China can be challenging, "JLC International analysts said earlier this week.

to the Asian market will not be adversely affected because other Asian countries have begun to increase appetite for US grades that Chinese refineries will not have, S&P Global Platts reported earlier this week.

According to ESAI Energy analysts, most private Chinese refineries remove US oil, but some state-owned traders can continue to import US oil at a rate of around 150,000 bpd – 200,000 bd per rest of the year; Asian countries.

“Overall, we expect US crude oil exports to Asia to grow from 1.2 million fd / day during the first half to about 1.3md f / d for the balance sheet in 2019, regardless of China's tariff on US crude, says ESAI Energy.

By Tsvetana Paraskova for Oilprice.com

More top readings from Oilprice.com:ebrit19659020??!function(f,b,e,v,n,t,s){if(f.fbq) return; n = f.fbq = function () {n.callMethod n.callMethod.apply (n, arguments):? n.queue.push (arguments)} ;! if (f._fbq) f._fbq = n; n.push = n; n.loaded = 0 ;! n.version = & # 39; 2.0 & # 39 ;; n.queue = []; t = b.createElement (e); t.async = 0 ;! t.src = v; s = b.getElementsByTagName (s) [0]; s.parentNode.insertBefore (t, s)} {window, document, & # 39; script & # 39 ;, "https: //connect.facebook.net/en_US/fbevents.js & # 39;); FBQ (& # 39; init & # 39 ;, & # 39; 247445556002302 & # 39;); FBQ (& # 39; tracks & # 39 ;, & # 39; page views & # 39;);
Source link