Bloomberg: U.S. Oil Vanishing From Chinese Tariffs Reveals America's Clout
* Latest China tariff list spares crude and includes only fuels
* Regional rivals were buying U.S. crude as China shunned supply
The removal of U.S. crude from goods targeted by Chinese tariffs is a sign that America has become too big to ignore in the oil market.
Less than two months after threatening to impose levies on imports of U.S. crude, the world’s biggest oil buyer has now spared the commodity. Only fuels such as diesel, gasoline, propane will be hit with duties on Aug. 23, according to China’s commerce ministry. That’s after the nation’s buyers, including top refiner Sinopec, began shunning American supplies to avoid the risk of tariffs.
China’s original plan to target U.S. crude came at an inopportune time for the country’s buyers. Sinopec’s trading unit, Unipec, was embroiled in a dispute with Saudi Arabia, saying the producer’s prices were costly and cutting purchases just as it was boosting American imports. Two months on, refiners were faced with the risk of supply disruptions from Iran to Venezuela and paying more to take advantage of booming U.S. output.
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WNU Editor: Here is a good analysis on China's growing dependence on foreign oil .... The Unforeseen Consequences Of China's Insatiable Oil Demand (OilPrice.com).
