• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 7 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 2 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 24 hours EU has already lost the Trump vs. EU Trade War
  • 17 hours China's Renewables Boom Hits the Wall
  • 9 hours Do The World's Energy Policies Make Sense?
  • 2 days ''Err ... but Trump ...?'' *sniff
  • 18 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 11 hours Impeachment Nonsense
  • 2 days Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 23 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 2 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

China’s Sinopec Seeks Tariff Waiver For US Crude Oil

Refinery

The biggest refiner in China and in Asia, Sinopec, plans to apply for a tariff exemption with the Chinese government for its imports of U.S. crude oil, Reuters reported on Monday, citing sources familiar with the issue.

On Friday, China and the United States traded tariff and counter-tariff announcements, with Beijing saying first that China would place tariffs on a range of U.S. products worth US$75 billion, including crude oil, in two batches starting on September 1 and on December 15. U.S. President Donald Trump retaliated with announcements of higher tariffs on Chinese products.  

The end of the truce in the U.S.-China trade war and the highly unpredictable nature of the next moves in the trade spat have made traders in China even more reluctant to buy U.S. crude oil despite its favorable economics, Chinese traders told S&P Global Platts earlier this month. 

Chinese customers are not touching spot cargoes and not even thinking of long-term agreements, traders told S&P Global Platts. Some Chinese companies, however, do have such long-term deals, like Unipec, the trading unit of Sinopec.  

Amid the trade war, Sinopec is now drafting contingency plans after China’s announcement that it would start imposing a 5-percent tariff on U.S. crude effective September 1. According to Reuters’ sources, this tariff would make U.S. crude $3 a barrel more expensive for Chinese buyers.

Sinopec plans to apply for a kind of tax exemption for its imports of U.S. crude oil, sources told Reuters. The Chinese refiner is also considering storing oil from the U.S. in bonded storage, such that hasn’t cleared customs in China yet, or sending it to other destinations, according to one of the sources.

In September and October, Sinopec is expected to receive a total of 8 million barrels of U.S. crude oil, Reuters reports, citing data from Refinitiv and Kpler.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play