Thread: China slams brakes on U.S. crude oil imports

The world’s second largest economy halted purchases of U.S. crude in August for the first time since September 2016, according to U.S. Census Bureau data released Friday. In July, Chinese buyers received nearly 12 MMbo from the U.S.

Beijing, once an enthusiastic buyer of U.S. crude after Washington lifted its restrictions on exports in December 2015, has even jockeyed with Canada for the position of top importer at times. Yet, China’s interest in American oil has diminished amid the escalating trade spat between the two nations.

In June, Beijing threatened to slap a 25% tariff on crude imports in response to U.S. President Trump’s $50 billion levy on Chinese imports. China’s largest refiner Sinopec then suspended its incoming shipments of U.S. crude, yet eventually resumed some purchases after crude was removed from that list.

The future of American crude shipments into China remains uncertain and there is still no guarantee that threats of a U.S. crude tariff won’t resurface as the trade conflict persists. American oil producers, particularly those who operate in the key Permian basin of West Texas and New Mexico, risk feeling the pain from the ongoing tensions as they increasingly look to foreign shores to market their supplies, as local demand becomes saturated.

https://www.worldoil.com/news/2018/1...de-oil-imports


Will China replace US crude with Iranian oil?

Will the US replace Venezuelan, Brazilian or Saud crude imports with US crude?

WTF? Is US crude quality not as good as what we import?

Wouldn't Trudeau be happy to make up the shortfall.

Originally Posted by Neverna

Will China replace US crude with Iranian oil?

or Venezuelan.

Originally Posted by SKkin

Will the US replace Venezuelan, Brazilian or Saud crude imports with US crude?

WTF? Is US crude quality not as good as what we import?

Er.... what?

Originally Posted by uncle junior

or Venezuelan.

They've already got Venezuela by the balls. Trouble is Venezuela's whole upstream business has been fucked by Chavez and Maduro, and will take years to get back online. Actually their midstream probably is, too.

Originally Posted by SKkin

Is US crude quality not as good as what we import?

Different quality, low API, not well suited to the refineries in US, better mixed with heavier crude -
LTO (US crude) was most likely used for animal feed or fertilizer in China

Originally Posted by SKkin

We're importing millions of barrels of oil from wherever...but at the same time we're exporting our own to China. Or had been...

Well the US consumes more than it produces; however, there are different types of crude, with different characteristics that make them easier or harder to refine, more suitable for asphalt, etc.

But no need to worry, Canada can make up the shortfall to China, and the US can use what it can't sell to make roads.

Originally Posted by Airportwo

Different quality, low API, not well suited to the refineries in US, better mixed with heavier crude -

Thank you...