Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on June 22, 2018
China Drops Oil Purchases to Dodge Tariff
Chinese oil buyers will keep taking crude from the United States through September, but plan to reduce future purchases to avoid a likely import tariff amid a trade spat between the world’s two largest economies, multiple industry sources said.
Beijing has put U.S. energy products, including crude oil and refined products, on lists of goods that it will hit with import taxes in retaliation for similar moves by Washington.
Beijing did not specify when it will impose a 25 percent tax on oil, and that gives buyers time to adjust purchases while waiting for the outcome of trade talks, the sources said.
Unipec, trading arm of Sinopec – Asia’s largest refiner and biggest buyer of U.S. oil – has been offering U.S. crude, such as West Texas Intermediate (WTI) Midland, to other Asian buyers for July, said three sources with knowledge of the offers.
“They (Unipec) only offer crude for September arrival, that means July-loading cargoes,” one of the sources said, although adding that the offer was “quite expensive”.
Unipec officials said this was normal trading activity, as the trading unit often re-sells excess crude from its refining system depending on economics and the state of its supplies.
A top trading executive with Sinopec told Reuters the state refiner will maintain its usual import volumes for July-loadings, but can’t commit to bookings further out.
“Future purchases (from August-loading onwards) will depend on developments,” said the executive, who asked not to be named due to the sensitivity of the subject.
A Sinopec spokesman declined to comment.
Unipec said early this year that the company expects to trade up to 300,000 barrels per day (bpd) of U.S. crude oil by the end of the year, about triple the trading volume last year.
That will be worth roughly $7.7 billion over the whole year based on $70 per barrel of oil.
“If the tariff is a long-term problem, the U.S. is going to struggle to find a market as big as China,” Joe Willis, senior research analyst at Wood Mackenzie said at a Thomson Reuters industry seminar on Thursday.
“I don’t see a major impact on our purchasing programme. Cargoes for July loadings are unlikely be affected,” said a planning executive with a Sinopec plant that buys 1 million to 2 million barrels of U.S. oil every month.
His plant this week nominated internally with Unipec for an August loading plan that is expected to be finalised a month later, said the planning executive.
UNCERTAINTY
China shipped in 3.89 million tonnes, or about 315,500 bpd of U.S. crude in the first quarter of this year, nearly eight times the amount a year earlier and 3.5 percent of China’s top crude oil imports, according to Chinese customs. The grades include WTI, Mars and Southern Green Canyon.
Nevertheless, uncertainty over the timing of the tariff and the outcome of U.S.-China trade talks has kept some buyers from booking further ahead. Chinese refineries typically order U.S. oil three months in advance due to shipping distances.
“We don’t even know whether it will eventually be carried out. What if the U.S. and China compromise and things change overnight?” said a third source, who deals U.S. oil with an independent refiner, adding that his company will stop booking U.S. crude for September deliveries into China.
Sinopec refinery sources said finding alternative supplies won’t be an issue as U.S. oil is relatively new to the Chinese market, and can be replaced by North Sea grades like Forties, Middle Eastern supplies or Russia’s Urals crude.
Reuters
64 Comments on "China Drops Oil Purchases to Dodge Tariff"
Makati1 on Fri, 22nd Jun 2018 7:27 pm
“Sinopec refinery sources said finding alternative supplies won’t be an issue as U.S. oil is relatively new to the Chinese market, and can be replaced by North Sea grades like Forties, Middle Eastern supplies or Russia’s Urals crude.”
The Chinese have many options that the Us does not. They can buy anywhere. The Us cannot sell anywhere at a good price. Not if there is a glut of fraked oily stuff and no demand.
As I said in another comment, Trump is destroying what is left of the Us. The Great Leveling continues.
DMyers on Fri, 22nd Jun 2018 8:50 pm
Trump is making a bad call on this tariff situation. First of all, I would suggest the article by Paul Craig Roberts on Lewrockwell.com today. Roberts points out that we do not import from China. What we import are the products of American companies operating in China. And yet these are treated erroneously as Chinese imports. The bottom line is that Trump is imposing a new tax on American consumers while driving China to shift its trade to other markets.
I know, people say there’s no market like America. But when you consider that China supplies us with cheap walmart stuff in return for toilet paper dollars, I think we are China’s bitch and not the other way around.
Frankly, I have the following problem with outsourcing to China. China is basically a slave economy. We abolish slavery in the USA but then utilize the slaves from another country. Clearly, there is an ethical problem that should be addressed here.
Without China, we consumers have to pay the price that comes with contract labor.
The old Wal Mart slogan, “Save money – Live better” will become “Spend more money – for less.”
Anonymous on Sun, 24th Jun 2018 5:16 am
If the Chinese buy other oil, the shale can go where that other oil left. This may not be optimal from a price/transport situation. But it is definitely not an issue of the Chinese being able to buy from the world, but the Americans only being able to sell to the Chinese. It is a wide world market both for sales of cargoes and for purchases.
Davy on Sun, 24th Jun 2018 5:43 am
Thank you Nony, for some reason people with agendas don’t want to understand this. Oil is a global resource and one of the most fungible of global resources.
Davy on Sun, 24th Jun 2018 5:43 am
“Trump is making a bad call on this tariff situation.”
Maybe in regards to it would be better leaving the system as it is and accepting the good and bad of it. Yet, Trump is right to say many of these tariff situations and trade practices are not fair and causing lasting damage. Take for instance the proposed car tariffs. Europe has a 10% tariff on cars and China a 25% tariff (dropping to 15% soon). The US has a 2% tariff on cars. Yet in the fake news of main stream media we see a howling of how horrible Trump is to free trade. This is the kind of shit people don’t see and MSM doesn’t tell you.
“Trade in goods and customs duties in TTIP”
https://tinyurl.com/nzzkevz
“EU duty on imports from the US is 10% US duty on imports from the EU is only 2.5%”
“China slashes tariffs on imported cars”
https://tinyurl.com/y99tv5b5
“The Chinese Finance Ministry said Tuesday that it will cut import duties on passenger vehicles from 25% to 15%, starting July 1.”
Cloggie on Sun, 24th Jun 2018 6:01 am
As usual I agree with DMyers. Trump is offering the only real solution: “America First”. No longer the “we print, you work and deliver” scheme, but “we are shielding ourselves off from foreign markets and endeavour to produce and consume our own products”. American happiness is not tied to the ownership of a “Merc” or “Beamer”, but a Cadillac will do fine, hopefully this time with a slightly more modest bonnett.lol
Globalism is in the interest of the Soros types only, not of the American worker.
What I hope for America is a 2nd inward-looking 19th century, the best American century so far. The PNAC croud, including meathead, may disagree, but I admittedly don’t have their best interest at heart.
Makati1 on Sun, 24th Jun 2018 6:10 am
All oil is NOT equal. Only some refiners can use frak oil. Only some refiners can use tar sand oil. Loss of a market in China can mean lower value and more debt for frakers and fwer refining customers. But then some here believe they know it all, when they know nothing.
https://www.eia.gov/todayinenergy/detail.php?id=8330
or
https://www.petropedia.com/2/9776/downstream/natural-gas-processing/refinery-configurations-changing-dynamics
or
https://oilprice.com/Energy/Crude-Oil/A-Detailed-Guide-On-The-Many-Different-Types-Of-Crude-Oil.html
Slip slidin’…
Davy on Sun, 24th Jun 2018 6:29 am
“The PNAC croud, including meathead, may disagree, but I admittedly don’t have their best interest at heart.”
nonsense nedernazi, I do not support your so called PNAC crowd at all. I just hold your extremist chevenistic PBM Eurotard fantasy agenda to account. IMA with no problems because your agenda is a fraud
Davy on Sun, 24th Jun 2018 6:32 am
3rd world, the above is an empty comment. You gave links but no titles and most importantly no content to support your assertion so we can better phase the last part of your comment as:
“But then I believe I know it all, when I know very little and am afraid to try to elaborate my empty references.”
Anonymouse1 on Sun, 24th Jun 2018 6:44 am
Cloggenyid is just as autistic as you are exceptionalturd. He is still trying convince….who again?, that your retard-in-chief is something he most defiantly, never was, or will be.
Mental illness seems to be a rather common affliction amoung you zio-firsters.
Not sure who is the more pathetic figure. The moronic, childlike trumpf, or his adoring fan, clogged sphincterham here.
Davy on Sun, 24th Jun 2018 7:12 am
Weasel, I think you have Asperger syndrome or maybe you are just a dumb impolite kid like mouse mind. When we evaluate the world from our small cross section on this board we have to ask ourselves is this what the younger generation has become. Two loud mouth stuck in adolescence idiots represent our youth.
Cloggie on Sun, 24th Jun 2018 7:13 am
Cloggenyid is just as autistic as you are exceptionalturd. He is still trying convince….who again?, that your retard-in-chief is something he most defiantly, never was, or will be.
Mental illness seems to be a rather common affliction amoung you zio-firsters.
Not sure who is the more pathetic figure. The moronic, childlike trumpf, or his adoring fan, clogged sphincterham here.
Our African sneer bunny from Toronto mouse1, who never has anything constructive to add, no surprises here, and uses his forum presence merely as an opportunity to wage a little race war against white Americans, manages to confuse every imaginable political motivations on offer on this planet. At least the “exceptionalturd” is shooting somewhat in the correct direction with his smears and he at least knows when he is lying.
Mouse1 in contrast has no clue to begin with. He picked up from his guru Louis Farrakhan that the US is essentially the “Jewknighted States”, a promising start for sure, but then the guidance of the great black patriarch is painfully lacking if mouse1 is forced to interpret things on this board on his own cerebral horsepower (make that ponypower), like blundering himself into moronically and stubbornly identifying me as a “Yid”, regardless of what I have said over the years against the Tribe and despite my real identity, namely Saxon-Dutch with Protestant ancestry ranging back to the Dutch Revolt against Spain, 1568-1648.
You can’t fix stupid.
JuanP on Sun, 24th Jun 2018 8:21 am
Delusional Davy “3rd world, the above is an empty comment. You gave links but no titles and most importantly no content to support your assertion so we can better phase the last part of your comment as:
“But then I believe I know it all, when I know very little and am afraid to try to elaborate my empty references.””
And how would you define your own comment, exceptionalist?
Davy on Sun, 24th Jun 2018 8:39 am
Bony Juan. Do you have the comment in question? I have made several.
GregT on Sun, 24th Jun 2018 8:58 am
“You gave links but no titles and most importantly no content to support your assertion so we can better phase the last part of your comment as:”
Davy,
If you wouldn’t mind, please provide everyone with the page number in the forum rule book, that supports your above assertion.
JuanP on Sun, 24th Jun 2018 9:03 am
I am in favor of increasing tariffs because I favor any measures that favor relocalization and reduced trade and/or shipping. I hope this trade war continues and grows. I believe its cost and the pain it causes are necessary.
Up until around a year ago China had never purchased a significant amount of oil from the USA. This oil trade is temporary and not relevant to either party in any way. The Chinese can buy oil elsewhere and the Americans can sell oil elsewhere. This is not a problem, only a very minor inconvenience. China also benefits because it is good for them to be reminded that the USA is not its friend or ally.
JuanP on Sun, 24th Jun 2018 9:06 am
Delusional Davy “Bony Juan. Do you have the comment in question?”
I wonder whether you are kidding or completely gone? The comment in question, moron, is quoted in full in the comment I made. God, you are thick!
Davy on Sun, 24th Jun 2018 9:07 am
Greggie, if you don’t mind provide page numbers of rules that don’t allow a board member to call out sloppy commenting.
Davy on Sun, 24th Jun 2018 9:15 am
Bony Juan, I realize you are a school drop out so being sloppy comes natural. Where is my link, title, and content in support of an assertion you are arguing because your comment did not reference one?
JuanP on Sun, 24th Jun 2018 10:41 am
Delusional Davy “Bony Juan, I realize you are a school drop out so being sloppy comes natural. Where is my link, title, and content in support of an assertion you are arguing because your comment did not reference one?”
I honestly have no idea what the fuck you are talking about. If you misunderstood my comments read them again. Or maybe you got two comments confused? I try to make sense of what you write, but it’s not easy because you make no sense! LOL!
GregT on Sun, 24th Jun 2018 11:48 am
“Greggie, if you don’t mind provide page numbers of rules that don’t allow a board member to call out sloppy commenting.”
Makati1’s post above was crystal clear to me Davy.
Perhaps it is your comprehension that is ‘sloppy’.
Davy on Sun, 24th Jun 2018 12:14 pm
“I honestly have no idea what the fuck you are talking about. If you misunderstood my comments read them again. Or maybe you got two comments confused? I try to make sense of what you write, but it’s not easy because you make no sense! LOL!”
“Bony Juan, your comment has no link from me so stick your “fuck talk” back in your ass. You are just playing games because I shoved you prick comment back down your throat” You guys constantly whine but fail to produce the goods.
Davy on Sun, 24th Jun 2018 12:20 pm
“Makati1’s post above was crystal clear to me Davy.”
Greggie, what kind of stupid answer is that. You guys are groupie gang members of course everything is crystal clear. Are you supposed to call out 3rd world with his intellectually sloppiness? Of course not you are going to enable and support his poor behavior.
“Perhaps it is your comprehension that is ‘sloppy’.”
3rd world through out an empty link. It did not have a title and contained no content. That is an empty reference and indicates intellectually sloppy people who are unable to back up their link with the facts that the link is supposed to have. So the comprehension problem here is actually you gaming and flanking your buddy from evidence of poor behavior.
MASTERMIND on Sun, 24th Jun 2018 12:33 pm
Davy
You are a paranoid loon and slandering the media just show how much you have swallowed right wing propaganda..You are turning into a tin foil hat conspiracy loon..”This is what the fake news doesn’t tell you”..Har har
Trump spent the G-7 meeting railing against high tariffs that do not exist..
Average tariff rates charged by G-7 nations:
USA: 1.6%
EU: 1.6%
UK: 1.6%
Italy: 1.6%
Germany: 1.6%
France: 1.6%
Japan: 1.4%
Canada: 0.8%
Source: World Bank
https://data.worldbank.org/indicator/TM.TAX.MRCH.WM.AR.ZS?end=2016&start=2016&view=bar
And sorry zerohedge has zero credibility..
MASTERMIND on Sun, 24th Jun 2018 12:36 pm
Davy
Trump promised his tax cuts would boost wages by 4k an average worker..And wages have gone down..And our economy declined in the first quarter, and now his is running the largest budget deficit in US history for it..You are brainwashed and dense if it wasn’t for your rich parents you would be in living in a cardboard box..ranting about the deep state on the street corner..
LMFAO
MASTERMIND on Sun, 24th Jun 2018 12:38 pm
Comparison of North Korea media & Fox News coverage of NK-US Summit in Singapore
https://twitter.com/TheDailyShow/status/1009847187088347136?ref_src=twsrc%5Etfw
Trump voters are conditioned to the level of Pavlov’s dogs..But instead of a ringing bell and treats, they get tweets..
MASTERMIND on Sun, 24th Jun 2018 12:38 pm
First, what is Trump’s motive? If it were concern about China’s economic management and trade policies, he wouldn’t be going out of his way to alienate allies with tariffs and insults but would be joining with them to confront China on the issues of concern. It may play well in the rust belt, contributing to the delusion that our hero is fighting to ensure jobs for working people — though it’s a tricky strategy, because it harms other parts of his loyal base, mainly farmers, and also, though more subtly, because it imposes a new tax on consumption, which is what tariffs amount to.
-Noam Chomsky
Davy on Sun, 24th Jun 2018 12:39 pm
“show how much you have swallowed right wing propaganda..”
Extremist talk like you do mouse mind. Intellectually confident people don’t take sides like you and your extremist blind lying liberals on this board. You guys are as disgusting as the anti-American scum that dity this board.
MASTERMIND on Sun, 24th Jun 2018 12:42 pm
UN says Trump separation of migrant children with parents ‘may amount to torture’, in damning condemnation
https://www.independent.co.uk/news/world/americas/us-politics/un-trump-children-family-torture-separation-border-mexico-border-ice-detention-a8411676.html?utm_source=reddit.com
From the land of the free and home of the brave..To torturing children..And for many of these immigrants these children are all they have..
Your are seeing the fall of America in real time- Trent Reznor
GregT on Sun, 24th Jun 2018 1:28 pm
“3rd world through out an empty link. It did not have a title and contained no content.”
All three of the links that Makati1 provided had both titles and content Davy. The links are not empty.
You continue to attack Makati1 on a regular basis, for no reason at all, other than you are emotionally upset about his opinions.
GregT on Sun, 24th Jun 2018 1:45 pm
And Davy,
3rd world is an American citizen, and his user name is Makati1.
Try harder to keep your emotions in check, they have no place in mature, reasoned, and/or intelligent debate.
Davy on Sun, 24th Jun 2018 1:50 pm
Greggie, stupid, go back to his comment that had empty links without an associated title and without content of the said link. Take a good hard look. Also grehggie, his empty comment was made to attack nony and my comment. You didn’t see that because you were to anxious to get with pricking Me. Grehggie, you are annoying others by spamming this board with your pricking activity. You are a selfish asswipe.
GregT on Sun, 24th Jun 2018 1:59 pm
The links are self explanatory Davy, and just because you do not agree with somebody else’s views, does not mean that they are attacking you. People are entitled to ther own opinions. Free speech is a privilege, defend it, or lose it.
MASTERMIND on Sun, 24th Jun 2018 2:04 pm
Within a decade (probably far less) of oil supply failure, the USA will cease to exist
https://medium.com/@End_of_More/the-oilparty-is-over-c06d3c723655
Davy on Sun, 24th Jun 2018 2:29 pm
Sure grehggie, keep thinking that because you don’t have an argument. You can’t stand having an American shut you up. A proper comment that exhibits intellectual detail on this board is one that has the title and then the link followed by content. This content is what the commenter want to use to support his assertion. Anything else is laziness, sloppiness, and often deceit. This shit we have on this board where extremist puke out multiple links after their arguments to indicate they have supporting sources is dubious. Extremist love to spam and flood the board with their half-baked agenda. What better way to support an extremist distortion then an empty link. You are only getting into this argument because your groupie gang engages in this. As the groupie gang flanker you must enable and deflect blame from your gang. You can do as you please but what is right is something else. So go ahead and support affirmative sloppiness, laziness, and deceit.
GregT on Sun, 24th Jun 2018 2:59 pm
“Sure grehggie, keep thinking that because you don’t have an argument. You can’t stand having an American shut you up.”
My username on this forum is GregT Davy, I couldn’t care less which country you were born into, and you aren’t shutting anybody up.
Davy on Sun, 24th Jun 2018 3:12 pm
Prick is your real name and you have serious obsssive issues. You dirty up this board with your personality disorders. What a fine reflection on Canada you and Asperger are.
GregT on Sun, 24th Jun 2018 3:22 pm
My real name is David Davy, and I have absolutely had enough of your BS. You have been attacking myself, and many others here for five years now. As long as you choose to continue, I will continue to call you out.
Your choice.
MASTERMIND on Sun, 24th Jun 2018 3:30 pm
Russia’s oil dependent economy is crumbling, and Putin is having to make threatening postures to divert attention from his problems. His oil age is ending in a different way and yet we cannot tell if his posturing is just that, but a shortage of resources in the past has invariably brought conflict..
Makati1 on Sun, 24th Jun 2018 6:54 pm
Davy is so fucked up, he cannot even comprehend what he reads and uses the wrong words to express his hate.
“…3rd world through out an empty link…”
The correct word is “threw” as in throwing, not “through” as in going across or to the other side.
BTW Davy: “Sticks and stones can break my bones but words can never hurt me.” You have no way to use “sticks and stones” so you are just a frustrated goatherd.
Davy on Sun, 24th Jun 2018 7:10 pm
“…3rd world through out an empty link…”
Thanks, spelling nazi. I will keep an eye on you too 3rd world now that you are making a deal of the spelling. BTW, please stop spamming the board with empty links.
Makati1 on Sun, 24th Jun 2018 7:20 pm
Try them again Davy. Maybe your I-toy is broken? All three of those links have an article attached. The first one is from the EIA. The second from Petropedia. The Third is from Oilprice.com. All have articles describing the comment’s topic, different types of petroleum.
Is your mind slipping Davy? Emotions getting away from you? Americans are all emotions and little thought. You are their poster boy.
MASTERMIND on Sun, 24th Jun 2018 7:24 pm
I think we’re at the beginning of a soft civil war
https://www.bloomberg.com/view/articles/2018-06-21/democratic-rage-would-look-something-like-this
I think we’re mostly through the soft part..
GregT on Sun, 24th Jun 2018 7:28 pm
The inability to differentiate between threw and through is not a spelling mistake Davy, it is a grammatical error.
MASTERMIND on Sun, 24th Jun 2018 7:28 pm
Madkat
Davy just slanders any links to information he doesn’t like..Its Orwellian doublethink..He is a close minded bigot and proud of it..Look where he lives, they celebrate stupidity..
Davy on Sun, 24th Jun 2018 7:29 pm
3rd world, I am politely asking you to properly post links. Put the title in quotation marks, the link next, and finally put the content in quotation marks. This content is found in the link that supports your assertion. How hard is that to do? You don’t have to do it but I will call you out when you don’t. You have been sloppy lately with your comments. Clean up your act for the betterment of the board. Thanks, 3rd world.
Davy on Sun, 24th Jun 2018 7:30 pm
thanks grehggie.
MASTERMIND on Sun, 24th Jun 2018 7:36 pm
Davy
You want people to chop articles up so its easier for you to try to refute..You want people to try to take them out of context on purpose..Your mind doesn’t have the scope to handle critical information..
Cloggie on Sun, 24th Jun 2018 7:41 pm
I think we’re at the beginning of a soft civil war
https://www.bloomberg.com/view/articles/2018-06-21/democratic-rage-would-look-something-like-this
I think we’re mostly through the soft part..
“If Democrats opt to use their power more aggressively — breaking rules —Schaller’s soft civil war hardly seems unlikely.“
Trump voters have no vested interest in America, just in breaking it up.
Makati1 on Sun, 24th Jun 2018 7:42 pm
MM, Davy’s mind doesn’t work, just his emotions. Hate is his master. Anyone here can drop a title into their search program and get the article. Anyone here, but Davy, it seems.