China surprises with threat on U.S. energy exports

[Rhiannon12866]

(Reuters) - Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil, natural gas and other energy products on Friday, just as China has risen to the top of the list of importers of oil from the United States.

China responded to $50 billion in tariffs imposed by U.S. President Donald Trump with a similar amount of levies on a variety of U.S. goods. But China also said it would impose tariffs on U.S. energy products, which analysts considered a surprise as previous tariff threats had centered on agricultural goods and automobiles.

“This is a big deal. China is essentially the largest customer for U.S. crude now, and so for crude it’s an issue, let alone when you involve (refined) products, too. This is obviously a big development,” said Matt Smith, director of commodity research at ClipperData.

China currently imports about 363,000 barrels of U.S. crude daily, on par with Canada as the biggest U.S. crude importer, according to U.S. Energy Department figures. It also takes in an additional 200,000 barrels a day (bpd) of other products like propane.

The U.S. energy industry has been buoyed by production from the nation’s shale fields, boosting overall daily oil production to a record 10.9 million bpd. Of that, the United States is now exporting about 2 million bpd, and Trump has touted dominance in energy production and export as key to American global influence.


More: https://www.reuters.com/article/us-usa-trade-china-oil/china-surprises-with-threat-on-u-s-energy-exports-idUSKBN1JB301



FILE PHOTO: A general view of a crude oil importing port in Qingdao, Shandong province, in this November 9, 2008 file photo. REUTERS/Stringer/Files

[Squinch]

1. China is the only one buying all that coal that whiny donnie insist we mine.

[CentralMass]

2. Well that is going to piss of some of turnips backers.

[KY_EnviroGuy]

3. China intends to rattle some Republican cages, LOL.....

and they're doing quite a job.

Let's see how Donny is at doing the back-step.......

[pazzyanne]

4. Surprise, surprise, surprise.

Who didn't see this coming.

[bronxiteforever]

5. China to buy Iranian oil at attractive prices

“This (ending US/Iranian nuclear agreement) is expected to benefit Chinese state-owned refiners, who could find themselves in a favorable position to buy abundant supply of Iranian crude oil at attractive prices,” she said.

Jaipuriyar added that since South Korea and Japan are U.S. allies they “would be keen to abide by the Trump administration's foreign policies as they require U.S. support and influence in their quest to completely denuclearize North Korea and improve diplomatic and economic ties with Pyongyang this year.” She added that both countries are also more capable of diversifying their crude sources.

China, however, particularly amid ongoing trade tensions with the U.S., will likely take advantage of the demand gap left by South Korea and Japan.

https://oilprice.com/Energy/Crude-Oil/China-Looks-To-Capitalize-On-Cheap-Iranian-Oil.html

[brush]

6. Look for the market to crater on Monday thanks to you know who.

[Duppers]

7. K & R

Glad. This will kick those big GOP oil donors where it hurts.