(Reuters) – US cargo brokers and Chinese importers said shipments of crude oil
from the United States to China will rise dramatically in the coming weeks,
as the world’s two largest economies prepare to review a deal struck in January after a long trade war.
They said that Chinese state-owned oil companies have temporarily
booked tankers to carry at least 20 million barrels of US crude for
the months of August and September, steps that may allay
The US concerns that Chinese purchases are at a significantly
lower level than purchase pledges under the rolled trade agreement. 1.
China was the largest buyer of US crude, receiving $ 5.42 billion in
2018 before trade tension halted flows almost completely.
China pledged in January to buy products in the energy sector worth $ 18.5 million
including crude oil and natural gas above its 2017 level,
implying a total value of about $ 25 billion this year.
According to data from the United States Census Bureau,
China’s purchases of US crude as of June 30 amounted to $ 2.06 billion,
highlighting the decline caused by the Covid-19 pandemic and the limited impact of the Phase 1 agreement.
But the sources said that there has been a jump recently in the purchases
of the Chinese state-owned oil and gas company PetroChina and its major refiners, Sinopec.
Reuters reported that a review of the US-China trade agreement initially
scheduled for Saturday will be delayed due to timing issues, and a new date has not yet been agreed.
According to Refinitiv Eikon data, in August China is already scheduled to
arrive in an unprecedented monthly supply of 32 million barrels of US oil.