Monday , October 18 2021

China would focus on US oil in the trade war



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The countervailing quotas for revenge against natural gas and soybeans in the US have already reduced Chinese imports of these products.

China is expected to start avoiding US oil imports as trade tensions between the two countries increase, according to traders and analysts.

With the resumption of the conflict in recent days, some Chinese buyers are likely to start reducing oil purchases in the US. expecting Beijing to impose tariffs, according to traders supplying US crude oil to China, who asked not to disclose their identities.

The countervailing quotas for revenge against natural gas and soybeans in the US have already reduced Chinese imports of these products. The addition of oil further alters what should be a mutually beneficial energy relationship between the world's largest crude oil producer and importer. USA It outperformed Saudi Arabia and Russia in first place last year, with China becoming the biggest buyer in 2017.

If US President Donald Trump applies new tariffs from September 1, Beijing is likely to respond with quotas on most or all of its imports from the US, including oil, writes Michal in a note to Maidan, director of the China Energy Program at the Oxford Institute for Energy Research.

"It seems like a crude oil tariff is inevitable if things get worse," said Li Li, an analyst at Shanghai-based commodities research company ICIS-China.

A trader from a company that supplies China and has a long-term contract to buy US raw materials, indicated that Beijing is likely to apply cancellation tariffs, although no such notification has been notified. The other two traders who regularly sell US crude oil in China expect refineries to suspend purchases to show their support for President Jingping, even if tariffs are not applied.

Representatives of Sinopec, China's largest refinery, and PetroChina, the largest oil company, did not immediately respond to emails seeking comment.

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