Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Friday, 19 October 19:23 (GMT -05:00)



Stock and commodities markets

China declares crude oil war on USA


Beijing is now considering the opportunity to cut down on the export of crude oil from the United States in response to Washington's decision to raise the import duties on Chinese products. The energy war between the USa and China may also affect Russia.
 
Apart from the possible oil import cut, China is also reluctant to shrink the import of crude oil from Iran, which is something that the USA wants. International experts assume that this fact alone may have a more significant impact on the global oil market than all the OPEC decision recently made. 
 
At this point, Unipec (a trade branch of Sinopec, a Chinese corporation) has suspended the import of crude oil from the United States. The reason is the escalation of the trade conflict between the two major economies. The ultimate terms are not specified but Unipec has suspended the import at least until October 2018. By the way, it's interesting to note that the American export of crude oil to China in 2017 exceeded the joined export to the UK and the Netherlands, which are the third and forth-biggest buyers of American oil. 
 
Back in February 2018, China used to head the list of the biggest importers of American crude oil. This is confirmed by the EIA's report. Over the first 8 months of 2018, China bought 335 000 barrels of crude oil a day off the United States, according to Thomson Reuters Eikon.
 
For the sake of comparison, a year before that, China's import of American oil was limited to 100 000 b/d. In September, Reuters expects China to cut down on the import of American oil significantly - under 200K b/d. Apparently, this is not going to be a disaster for American oil companies.
 
Also, the production of crude oil in the United States came close to 15 million barrels a day in June, with only 2,6 millions b/d exported.
 
So, the big trade conflict is still underway. It's interesting to note that the oil import cuts are taking place amid this escalating conflict of the two superpowers. Apparently, this is a response to America's import duty hikes. for those of you who don't know, previously Donal Trump suggested raising the import duties for Chinese products all the way up to 25% instead of 10% planned before. Shortly after that, China urged the USA to resume the talks and announced counter-measures if the conflict escalates.
 
It's highly probable that higher American import duties will result in more Chinese companies refusing to buy American oil. Unipec is not the only CHinese company out there considering this step. PetroChina, Zhenhua Oil, and a range of other Chinese refineries may well do the same. By the way, Dongming Petrochemical Group, an independent Chinese refinery, already suspended the import of American oil in mid-July. Instead of buying American oil, CHinese companies are now buying Iranian oil, which is something Washington doesn't want. By the way, CHina accounts for 30% of the entire Iranian export of crude oil. The rest of the oil demand is covered by Russia, Saudi Arabia, and Angola.
 
At the same time, NordFX experts report that the current WTI oil price is close to $70/b.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

USA Leaves China Without Crude Oil, Russia Is Ready To Compensate

The trade war between the United States and China is still underway. Earlier this month, America made another attempt to undermine the Chinese economy. The thing is, that up until recently, America used to be one of the biggest exporters of crude oil to China. In summer, the U.S. export of crude oil to China used to be equal to 10,5 million barrels a month. At this point, America has almost suspended the export of crude oil to China. Last month American oil companies shipped as little as 600K barrels, with no oil shipping planned for this month.

Publication date: 17 October 10:29 AM

Evgeniy Filichkin: FortFC Launches pre-ICO

While skeptics armed with political axioms, and complicated math formulas, are trying to persuade the world that sooner or later, the cryptomarket industry is doomed to exhaust its potential at some point in the future, the cryptomarket itself is becoming a part of the global economy.

Publication date: 03 October 09:10 AM

Trump is helpless: oil prices keep going up

Oil prices keep going up. Brent oil has just exceeded $83/b. Obviously, Donal Trump's attempts to urge the OPEC to increase their oil production have filed so far. For those of you who don't know, not so long ago Donald Trump threatened the OPEC in general and Middle-Eastern oil producers in particular with consequences if they refuse to start increasing their oil production to dump international oil prices as soon as possible. However, those threats seem to have had no impact on the OPEC and the prices are still going up. 

Publication date: 01 October 10:15 AM

Trump Will Take Revenge on Middle East because of Crude Oils

Donald Trump threated some Middle Eastern oil producers to take revenge on them because of crude oil prices. This is not the first time the American president is criticizing the Middle East in Twitter for being reluctant to contribute to lower oil prices. 

Publication date: 24 September 10:02 AM

China's dependence on crude oil increases fast

Over the last few years, China has been getting more and more dependent on the import of crude oil and some other energy carriers. Most of those oil imports are of Russian origin. the thing is that CHina's domestic oil and natural gas production has been contracting over the last few years while the country's production capacities have increased and are now in high demand of more energy.

Publication date: 11 September 10:40 AM

Trump Is Close to His Goal - Oil at $50/b

According to Finanz, President Trump is close to making oil prices drop down to $50/b like never before. Last week was bearish for the global market of crude oil. This happened mainly due to the agreement between the U.S. president and the King of Saudi Arabia.

Publication date: 23 August 11:36 AM

Investment Banks Raise Their Oil Forecasts

The world's biggest investment banks have raised their oil forecasts again, for the 10th month in a row, The Wall Street Journal reports. 

Publication date: 02 August 12:00 PM

Oil Prices May Skyrocket to $400/b if Iran Blocks the Strait of Hormuz

Blocking the Strait of Hormuz will inevitably trigger a global energy crisis while pushing oil prices to unseen heights, maybe even all the way up to $400/b. This is what the experts interviewed by PRIME think about the situation.

Publication date: 19 July 09:45 AM

Higher OPEC+ Production Quotas Won’t Raise Oil Prices, Kudrin Says

Chairman of the Russian Accounts Chamber Alexei Kudrin assumes that the OPEC+ participants’ decision to increase the daily oil production quotas won’t affect international oil prices.

Publication date: 16 July 09:58 AM

Trump Urges OPEC to Raise Their Daily Oil Production by 2M Barrels

Donald Trump claims that the OPEC should raise their daily oil production by 2 million barrels. During his interview to Fox News, he accused the oil cartel of manipulating oil prices.

Publication date: 05 July 11:47 AM