Energy - - Aug 17,2018
As per reports, since the start of August, not a single tanker of crude oil has been loaded from the United States assured for China.
The trade dispute between the two biggest economies on this globe is quite evidently influencing the crude oil sector. Chinese oil importers are avoiding the purchase of U.S. crude since they fear Beijing's decision to omit the commodity from its tariff list.
Not even a single tanker from the U.S. has been loaded with crude oil bound to China, considering the situation from the start of this month. It is seen as a drastic situation as compared to 300,000 barrels per day as recorded in June and July.
The tit-for-tat trade dispute between the United States and China since the last few months has demolished several sectors. Crude was released from China's final tariffs list on $16 billion in U.S. goods as announced last week.
It is believed that to replace U.S. oil, the Chinese have turned their heads towards the Middle East, Latin America and West Africa. This decision has helped as a thin price-spread between Dubai crude and Brent allowing the Atlantic basin oil to be lucratively shipped to Asia. On Wednesday, the spread had nearly halved as compared to statistics noted a month ago to $1.63 per barrel.
With alternatives pouring in for China, the United States does stand as an important global supplier since the nation opened up its market for global exports in 2016. Even if it is a short-term complication, the Sino-U.S. trade clash poses heavy risk to the global economic growth.