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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"
GregT on Sun, 24th Jun 2018 7:55 pm
“Put the title in quotation marks, the link next, and finally put the content in quotation marks.”
I prefer five asterisks at the beginning of the links, all of the links in one row separated by exclamation marks, and then five more asterisks at the end.
Anybody else have a personal preference?
fmr-paultard on Sun, 24th Jun 2018 7:56 pm
Davy: up your butt and through the penis.
JuanP on Sun, 24th Jun 2018 7:58 pm
Delusional Davy “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.”
I am beginning to wonder if the Exceptionalist’s problem with links is not symptomatic of a new neurological malfunction, a new psychiatric problem, or an aggravated one? He’s been having a lot of problems with links; I don’t think it’s normal! It must be sad to be so disfunctional; he appears completely incapable of behaving like a healthy person.
MASTERMIND on Sun, 24th Jun 2018 8:00 pm
Greg
Can I get that thing that Davy used to get all the time way back in the day? what was it? Oh yea.. “Pussy”..
LOL
JuanP on Sun, 24th Jun 2018 8:02 pm
And why do you think anyone is going to do what you tell them? That is completely insane! You don’t control other people, exceptionalist. For god’s sake, you can’t even control yourself! You should start by learning to control your behavior until at least you can pretend to be normal. I am afraid we are going to to read about you in the news someday.
Cloggie on Sun, 24th Jun 2018 8:06 pm
http://www.spiegel.de/politik/ausland/tuerkei-wahl-recep-tayyip-erdogan-der-ewige-sieger-analyse-a-1214723.html
Erdogan decides he won election. Populist impetus remains. EU-membership talks impossible, thank God.
http://www.spiegel.de/politik/ausland/frankreich-ermittler-decken-offenbar-anschlagsplaene-auf-muslime-auf-a-1214725.html
Plot to kill Muslims in France preempted, 10 right-wingers detained.
http://www.spiegel.de/politik/deutschland/angela-merkel-im-asyl-streit-mit-seehofer-kanzlerin-setzt-auf-europa-a-1214705.html
Merkel-initiated European asylum talks, which only purpose is to save chancellorship Merkel, are going nowhere. Nobody gives a fucks about these black civil war initiating ticking time-bombs. Even Macron now open to idea to send traficking boats with young fighting age males back to Libya. Italian government rulez. Merkel quietly mocked at, her authority is gone. For the next 100 years no females leading the government anymore as they fuck up everything. It is probably too late to avoid an armed struggle in Europe. German Television yesterday showing very normal people from Saxony who openly state they have come to the conclusion that Merkel and the rest of the system wants to abolish them and that they don’t want to let that happen.
Things are going to change irreversibly now as western Europe is facing its own 1989, but this time much more violent. The question now is if violence will start in Europe or in America. The progressive 20th century and US empire are being terminated as we speak.
#EthnicCleansingPlanet
JuanP on Sun, 24th Jun 2018 8:14 pm
Picomind “Russia’s oil dependent economy is crumbling, and Putin is having to make threatening postures to divert attention from his problems.”
This comment is completely inaccurate and not worthy of someone with a picomind. I am reducing my estimate of your mind’s functionality to 1/1,000 th my previous estimate based on recent evidence. From now on I shall call you Femtomind (that is a quadrillionth of an average mind for you).
Cloggie on Sun, 24th Jun 2018 8:23 pm
“Dutch” Turks from 7th century celebrate victory Erdogan in Rütterdüm:
https://www.geenstijl.nl/5142626/totaalchaos-in-randstad-toeterende-erdo-turken-houden-hardwerkend-nederland-uit-slaap/
There is no integration, just territorial conquest.
Cloggie on Sun, 24th Jun 2018 8:41 pm
James Howard Kunstler talking more rightwing stuff, criticises members of his own tribe:
https://www.lewrockwell.com/2018/06/james-howard-kunstler/dont-cry-for-me-rachel-maddow/
“I daresay that commentary like Krugman’s will only serve to amplify a growing resentment of Jewish intellectuals in this country — including myself, increasingly the target of anti-Jewish calumnies and objurgations.”
One is reminded of the words of uber-neocon Michael Ledeen:
“Creative destruction is our middle name, both within our own society and abroad. We tear down the old order every day, from business to science, literature, art, architecture, and cinema to politics and the law. Our enemies have always hated this whirlwind of energy and creativity, which menaces their traditions (whatever they may be) and shames them for their inability to keep pace. Seeing America undo traditional societies, they fear us, for they do not wish to be undone. They cannot feel secure so long as we are there, for our very existence—our existence, not our politics—threatens their legitimacy. They must attack us in order to survive, just as we must destroy them to advance our historic mission.”
You may have attempted to destroy us, mr Ledeen, but all the signs are that you are going to fail your “historic mission”, being uniting the world in a single communist power-structure, owned by you. It looks like a lot of US Jews will flee to Israel, just like their Soviet counterparts did between 1953 and 197x.
Boney Joe on Sun, 24th Jun 2018 9:47 pm
DavyDonaldTurd (DDT):
You may be curious regarding your updated screen-name. Your worship of Trump helps explain your propensity to blend fact and fiction. The truthfulness of this statement is confirmed by analyzing a few examples: You like throwing around “liar, lying”. Then you doubled down by suggesting that you were a liberal voter- what a scammer.
DDT, your thoughts reflect AND project perfectly like a mirror; the subconscious perceptions that are held about the Self. What you fail to comprehend is your frequent bullying and incessant assaults are a perfect reflection of your present state of mind and how you feel about yourself on the inside. Your resentment and anger toward others reveals anger and contempt of yourself, rooted in jealously, fear, and a sense of failure with who you are, questioning your ability to aptly compete with others.
DDT, use this knowledge to become more self-aware and introspective. By doing so, you can diffuse inner conflict and confusion and become a pacifist of the mind rather then a bellicose, xenophobic, and hateful Trumptard of the mind.
DavyDonaldTurd (DDT), clean-up your act, now, before it’s too late. The clock is ticking and the hour is late.
You poor, unfortunate thing- Ms. DDT Thing, with your permission.
GregT on Mon, 25th Jun 2018 1:18 am
“DT, your thoughts reflect AND project perfectly like a mirror; the subconscious perceptions that are held about the Self. What you fail to comprehend is your frequent bullying and incessant assaults are a perfect reflection of your present state of mind and how you feel about yourself on the inside. Your resentment and anger toward others reveals anger and contempt of yourself, rooted in jealously, fear, and a sense of failure with who you are, questioning your ability to aptly compete with others.”
Killing Me Softly
I heard he sang a good song, I heard he had a style
And so I came to see him, to listen for a while
And there he was, this young boy, a stranger to my eyes
Strumming my pain with his fingers
Singing my life with his words
Killing me softly with his song
Killing me softly with his song
Telling my whole life with his words
Killing me softly with his song
I felt all flushed with fever, embarrassed by the crowd
I felt he’d found my letters and read each one out loud
I prayed that he would finish, but he just kept right on
Strumming my pain with his fingers
Singing my life with his words
Killing me softly with his song
Killing me softly with his song
Telling my whole life with his words
Killing me softly
-Roberta Flack
https://www.youtube.com/watch?v=qMzzw6IXH1s
GregT on Mon, 25th Jun 2018 1:39 am
“You poor, unfortunate thing- Ms. DDT Thing, with your permission.”
Hmmm, interesting…..
Former girlfriend perhaps Davy?
MASTERMIND on Mon, 25th Jun 2018 1:46 am
Kuntsler has turned into the drunken uncle at the family reunion..He needs to go back to talking about peak oil and collapse..
MASTERMIND on Mon, 25th Jun 2018 1:52 am
Yes of COURSE there are people who voted Leave for reasons other than xenophobic bigotry or fading imperial jingoism. I’ve met at least four.
But it felt good to be marching through London with the hundred thousand yesterday. And to be reminded of the decent half of Britain.
-Richard Dawkins
https://twitter.com/RichardDawkins/status/1010775795646779392