China’s US Imports Set To Jump After Trade Truce

*The US leapt from nowhere to become China’s ninth largest crude supplier with 363,000 b/d for the first half of 2018 (ahead of Venezuela with 346,000 b/d).

*But volumes, as measured by the US export stats, fell to zero from August amid escalating tit-for-tat trade tariffs (see chart 1). China in September imposed a 10% tariff on US LNG and threatened similar measures against crude and other oil shipments. China had threatened to increase the LNG tariff to 25% from 1 January in response to US threats to hike the tariff on Chinese goods to 25% from the same date. Though the tariff on LNG remains for now, the threat that it would be raised, or extended to crude, has receded. (CONTINUED - 861 WORDS)


chart 1: US Oil Exports To China ('000 B/D): With 378,000 B/D For The First Seven Months Of 2018 China Overtook Canada As The Top Customer For US Crude Exports. But Volumes Have Been Zero Since
chart 2: China Imports Of Oil & Gas From The US Were Worth An Average Of Over $1bn/Month For Jan-Sep 2018 But Spending Has Since Collapsed With No Crude* Imported Since($Mn)
chart 3: US Crude Exports To Asia Slumped In August As China Stopped Buying But Have Since Bounced Back Above 1mn B/D. Both Korea (457,000 B/D) And Japan (173,000 B/D) Took Record Volumes In October ('000 B/D)