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China, despite the ceasefire of the economic war, does not buy US oil

China, despite the ceasefire of the economic war, does not buy US oil

China’s world’s largest oil importer, despite a three-month ceasefire, is set to begin purchasing 2019 with zero imports from the United States, according to Reuters. Freight costs are relatively high and political instability has reduced demand. The decline in China’s appetite for US oil, the United States, which has become the world’s largest oil producer this year, will only have silver in the Chinese market, even though a new wave of refineries in China has begun. It also shows that China is unwilling to use oil purchases to help fill the gap between the two countries, which is the reason for the conflicts between the two major economies in the world. Read this article about China, despite the ceasefire of the economic war, does not buy US oil.

China, despite the ceasefire of the economic war, does not buy US oil

The US trade balance deficit peaked to $ 43 billion in October this year, with Chinese companies storing Chinese goods to prevent higher tariffs next year.

Yet T, an analyst at SIP Energy Consulting Institute in Beijing, said Chinese companies do not have the incentive to buy US crude for good access to Iranian and Russian oil. Even though the trade conflict between China and the United States has recently been slowed down, the executive authorities of the national oil companies refuse to buy American oil unless they are told to do so.

China stopped importing oil from the United States in October and November, with intensified business conflicts. Part of this imports was resumed in December, but its value was only one million barrels. China’s total oil imports from the United States reached 300 million barrels.

China’s refineries that used to buy American oil previously said they did not start buying from the United States due to the instability of the prospects for trade between Washington and Beijing, and the increased cost of carrying cargo and low refineries in the region.

China, despite the ceasefire of the economic war, does not buy US oil

China, despite the ceasefire of the economic war, does not buy US oil

The cost of carrying US crude oil to Asia in a super tanker is three times that of Middle East oil.

A senior official in a state-owned oil refinery said his refinery did not have any custom for delivering US oil in the first quarter of this year.

He said alternatives such as crude oil from the North Sea, Australian gas condensate and Russian oil have turned up.

Another oil official said that small Tyapat refineries may import shipments, but they are limited.

Despite refusing to buy US oil, China’s crude imports from all regions reach 45 million tonnes (10.6 million barrels per day) in December.

Russia remains the largest producer of oil at 7 million tons in December, with Saudi Arabia ranking second to 5.7 million to 6.7 million tons.

China’s oil imports will begin in December after China’s two US refineries will use its exemptions.

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