• 6 minutes Will the trade war hurt US project builds? Not if the US does it right.
  • 12 minutes OIl Targets from Experts to $300, vs. imho $52
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 7 hours Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 2 days Apple's $300 fund in China
  • 6 mins Trade War of 1930s, Extended the Great Depression
  • 2 days Ireland Exits Fossil Fuels
  • 6 hours Oil prices going down
  • 21 hours Britain should bet more on renewables and less on nuclear
  • 3 days Top Adviser to Khamenei: Iran Will Leave Syria, Iraq Only if Baghdad, Damascus Want It
  • 3 days Michiganders, Rejoice: Musk Will Fix Flint
  • 2 days Russia & China bypassing Oil Sanctions to North Korea, U.S. Peeved
  • 11 hours Tesla Shareholders Finally Fed Up? Could it be true?
  • 3 days Trump Threatens Sanctions against Shell, Uniper
  • 3 days Consumer prices on rise
  • 2 days What can bring oil prices down?
Alt Text

Oil’s Perfect Storm Lays At Trump’s Feet

As U.S. President Donald Trump…

Alt Text

Russia: Oil Producers Will Act If Market Deficit Emerges

Russian Energy Minister Alexander Novak…

Alt Text

Oil Prices Crash As Libya Resumes Production

Despite a significant draw in…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

U.S. Sour Oil Sellers Panic, Cut Prices To Asia

Fracking operation

U.S. sour crude oil sellers have reduced their pricing for Asian customers, fearing that demand for U.S. oil may drop as China threatens to slap tariffs on American energy imports and as Middle Eastern producers may boost supply in line with OPEC’s agreement to increase production, Reuters reported, citing trading sources.

Sellers of U.S. oil “are worried about the trade war and they panicked. China’s buying has slowed as most of the refineries are pending (purchases),” a buyer with a North Asian refiner told Reuters.

The renewed U.S.-Chinese trade tit-for-tat threatens to limit U.S. crude oil exports to China that have been gaining pace in recent months and eating into OPEC’s share in the market—a market that is setting the pace of global oil demand growth. The heightened trade tension between the United States and China over the past weeks resulted in China threatening to slap a 25-percent import tariff on crude oil and refined oil product imports from the United States.

In case of reduced U.S. oil exports to China, the biggest winner of an oil trade war will be OPEC—the supplier that has seen its market share diminished by U.S. oil. The cartel would be the biggest beneficiary of possible Chinese tariffs on U.S. oil imports, as these could help it regain market share, OPEC sources and industry officials tell Reuters. Related: The Energy Companies Fighting For EV Charging Dominance

Sellers of U.S. sour crude grades have lowered prices also because OPEC and allies agreed in June to boost production by an unspecified number, which Saudi Arabia interprets as an increase of up to 1 million bpd.

Currently, the U.S. Mars grade for Asian customers for October delivery is offered at US$1.00-1.50 a barrel premium over the Dubai benchmark on a cost-and-freight basis—down by at least US$0.50 per barrel from the Mars grade prices for September delivery, according to Reuters’ sources. The current Mars pricing is on par with the Middle Eastern sour crude Oman, the sources said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Mamdouh G Salameh on July 05 2018 said:
    The sooner President Trump drops his discredited “America first” policy, the better for the United States economy and the also the global economy. He is antagonizing the whole world and achieving nothing for America. When the global trade declines, America’s trade with the world declines. US oil exports to China will not be the only losers in the brewing trade war between China and the United States.

    The mutual tariff retaliations between China and the United States show that China will not run from a fight with the United States. China has formidable weapons in its arsenal not least among them the threat to offload its holdings of US Treasury bills estimated at $1.3 trillion and also the petro-yuan which is starting to gain momentum and weight in the global oil market at the expense of the petrodollar.

    President Trump will realize soon that China will not bend the knee before him and stop his trade war against it. The world’s two biggest economies need each other not only for their mutual benefits but for the whole world’s benefit as well.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News